ISLAMABAD (Sarzameen News) – Senate Standing Committee on Finance and Revenue has took a Suo-Moto action against the actions of Securities and Exchange Commission of Pakistan (SECP) against the Stock Brokers.
Chairman Senate Standing Committee on Finance and Revenue Senator Saleem Mandviwalla has said that “we have received numerous complaints about the dubious role of the capital Market Regulator- SECP in recent downfall in the stock Market. It has learnt that SECP has recently launched a drive to push the stock market brokers to liquidate positions of their client’s whom they have provided in-house financing”
Senator Saleem Mandviwalla has said that “The current manipulative drive from SECP is linked with the ruling Government efforts to show the world that in case of adverse decision in ongoing PANAMA Case against the ruling family of Nawaz Shairf, confidence of investors will erode from the country’s capital market”.
Senator Saleem Mandviwalla has said that “Evidences are available that SECP has failed in its due role of mitigating risks of frauds. Documents to that effect have also been discovered that despite adverse findings from audits SECP failed to take action for almost one year”.
Senator Saleem Mandviwalla has said that “There are reports that main architect behind this SECP manipulative drive is a SECP commissioner who is continuously in touch with few brokers f stock market and upon whose dubious advices recent actions have been initiated by the SECP”.
Senator Saleem Mandviwalla has said that “A meeting has been called in first week of March, Chairman SECP and the brokers has been summoned in the committee meeting”.
It should be noted that the issue of in-house financing (finances extended by the brokers to their proprietary funds) have been under discussion between SECP and Stock Exchanges in the past as well and SECP has acknowledged that there are genuine practical issues that need to be sorted out and the issue needed to be dealt with carefully in order to avoid abrupt adverse impact to the stock exchange.