ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed to replace the current Appellate Bench of the Commission with an independent “Financial Services Market Tribunal” for hearing appeals against orders passed by the Commission.
The SECP officials have given briefing to the 58th meeting of the National Assembly Standing Committee on Finance and Revenue held here at the SECP Headquarters under the chairmanship of Faiz Ullah, MNA. During the in-camera briefing at the SECP Headquarters, the committee also considered the SECP (Amendment) Bill 2020 that include amendments with respect to improve transparency in process of appointment of chairman, commissioners and members of the Policy Board, clarity in the role of Policy Board and chairman, code of conduct for the chairman, commissioners and members of the Policy Board.
It is also proposed to ensure representation of all the provinces in the SECP Policy Board.
It is also proposed to replace the current Appellate Bench of the Commission with an independent “Financial Services Market Tribunal” comprising technical and judicial members for hearing appeals against orders passed by the Commission.
The committee discussed the agenda items pertaining to review of the Companies (Amendment) Bill 2020, with regard to issuance of Ordinance No V of 2020, Companies (Second Amendment) Bill 2020 with regards to Ordinance No X of 2020, and the SECP (Amendment) Bill 2020.
The SECP team gave a detailed presentation to the committee members on proposed amendments in respective statutes.
The SECP chairman informed the committee that the Commission has proposed amendments in the Companies Act, 2017, primarily to promote start-ups, business innovation, entrepreneurship and improve general business climate, promote ease of doing business, and remove some anomalies/ambiguities in the Companies Act.
A few significant proposed amendments include introduction of a new concept of “Start Up companies” and exemption for private companies having Paid up Capital up to Rs1 million from filing of un-audited financial statements.
Some specific amendments with the purpose of protection of minority shareholder’s rights were also proposed.
Moreover, amendments were also proposed to strengthen Audit Oversight Board (AOB)’s independence, financial resources, and regulatory powers that include allowing the AOB for conducting direct inspections and enhancing its scope by including public interest entities in the preview of the AOB.
Copyright Business Recorder, 2021