Islamabad (19th Nov, 2019): Securities and Exchange Commission of Pakistan (SECP) Policy Board has reportedly termed a statement by PIA Chief Executive as ‘market manipulation’.
According to The News, the SECP board has taken a serious note of the statement issued by Pakistan International Airlines’ (PIA) CEO, regarding profitability of PIA. The board meeting which was chaired by Mr. Khalid Mirza, issued an official statement on Saturday declaring that the “prima facie can be taken as manipulating the market”.
Reportedly, PIA CEO Air Marshal Arshad Malik stated that PIA’s revenue has increased by more than 40% in the last six months alone, as confirmed by reports of The News. Thereby, the SECP commission has been “directed to look into and take appropriate enforcement action”. The policy board has further directed SECP to develop a system to monitor public sector organisation for any possible violations of the laws which must be administered by the SECP.
Moreover, the board has called for course of action to ensure that service orientation is being instilled in the staff. The board has further expressed concern over the non-appointment of the CEO of Pakistan Stock Exchange (PSX).
As confirmed by The News, the board has directed the SECP commission to revisit the PSX’s proposed growth enterprise market listing regulations to make provisions for a premium boards for a premium tier in the stock exchange for growth of the capital market and to encourage public offerings in the primary market.
The policy board which consists of members of the ministries of finance, commerce, and law, State Bank of Pakistan, SECP as well as representatives of the private sector, as per SECP’s annual report of 2019, has asked that the commission return to the ‘drawing board’ to ensure that it is “professional” and that it portrays the positive and negative facts as well as stating the “problems faced by the commission during the past year particularly in reference of unwarranted intrusion by LEAs (Law Enforcement Agencies) and also states realistically future goals and strategic plans of the commission”.
The policy board has stated that the draft of Insurance Bill 2019 should be reviewed to remove harsh regulatory impediments which cause hindrance to the overall growth of insurance sector. Additionally, the draft of law amendments should be simplified and based on principles with the aim to “facilitate the ease of doing business in the country”.
The board has further decided to rationalize the Futures Act 2016 and the Limited Liability Partnership Act 2017, “so as to constitute a facilitating regulatory environment”. Moreover, as confirmed by The News, the SECP commission is advised to revisit the Regulatory Sandbox Guidelines 2019 and to make appropriate amendments in the companies regulations 2018 to promote mobilization of capital.
The board has reportedly approved the following :
- General Takaful Accounting Regulations 2019,
- the Provisional Manager,
- Official Liquidator Ragulations 2019,
Corporate Rehabilitation Regulations 2019 on directive of the adoption of IFRS-14 Regulatory Deferral Accounts under section 225 of the Companies Act 17, the directive of financial reporting of family window takaful operations by life insurers, and the compliance of compulsory group insurance under the Industrial and Commercial Employment Ordinance 1968, as confirmed by The News.
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