Warning for brokers: SECP resolute against misuse of assets

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KARACHI: Reiterating its commitment towards stringent regulations, Securities and Exchange Commission of Pakistan (SECP) Chairman Zafar Hijazi emphasised the need to maintain investor confidence and adopting a zero-tolerance policy against misuse of assets. 

He was chairing the second meeting of theCONSULTATIVE group constituted by the SECP held here on Friday. He restated his resolve to do everything possible, including seeking assistance of NationalACCOUNTABILITY Bureau (NAB), to arrest those responsible for scams.

The consultative group agreed that strict legal actions should be taken against brokerage houses that were involved in the misappropriation of client assets and that the culprits should be severely punished to create deterrence against any malpractices.

“The SECP and NAB are now closely collaborating with each other to investigate such cases and proceed against the culprits,” Hijazi said.

The group also reviewed progress on the reforms and development measures agreed in the first meeting.

It was observed that significant progress had been made in areas of various new regulations and initiatives by the SECP. These include introduction of revised regulatory framework for book building, launch of investor awareness portal, introduction of more stringent criteria for selection of auditors for brokers and reforms in negotiated deal market.

The SECP chairman also said that pursuant to the promulgation of the 2015 Securities Act, a revised comprehensive broker regime would be implemented after publicCONSULTATION.

Additionally, it was agreed that the process of reforms and structural development in capital markets would continue with unwavering resolve to take stringent enforcementACTION in any case of misappropriation of investor assets.

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