'Pursuing self-serving disputes with vigour': SECP response

The Securities and Exchange Commission of Pakistan (SECP) strongly refutes the accusations made in an article "Pursuing self-serving disputes with vigour" published in Business Recorder on July 13, 2014. It appears to be an open attempt to malign Pakistan's apex regulator. The SECP is one of the most vigilant and assertive regulator that keeps a watchful eye on market participants and intermediaries to safeguard the rights and interests of all stakeholders. The supervision and surveillance departments of the SECP regularly conduct on-site and off-site inspections of its regulatees and as a result of such inspections and audits, issues warnings, show-cause notices and orders, and imposes penalties for violation of the rules to maintain an orderly market.
In the matter of Karachi Stock Exchange (KSE), the Securities Market Division of the SECP had conducted thorough investigations and issued a detailed order, justifying the imposition of penalties on KSE and its management. The KSE management using its right of appeal challenged the order at the SECP's appellate bench which demonstrates the confidence of the directly affected in the neutrality and professionalism of the apex regulator. In pursuit of transparency, all warnings and orders passed by the SECP are considered public record and placed on the SECP's website for public information. The journalists covering SECP regularly visits the SECP website and use this information.
Further, it needs to be highlighted that the statement attributed to the Chairman SECP about the stock market crash was reported out of context in the newspaper and subsequently a clarification was issued explaining the factual position.
Interestingly, the writer referred to remarks by experts but did not mention the name of any of these experts which reflects mala fide intentions and prejudice. It is pertinent to mention here that the writer of this article, Rabnawaz Awan, until recently was working as junior support staff in the media department of the SECP. As an outsource employee, his contract of service expired on May 30, 2014, and was not renewed due to rationalisation of workforce and expense control at the SECP. He has very limited exposure and knowledge about the working of capital markets and has made these sweeping assertions out of personal disgruntlement following the non-extension of his employment contract.
(The writer is SPOKESPERSON SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN ISLAMABAD)