ISLAMABAD (GNP) : A high-level meeting of the Prime Minister’s Committee on strengthening the Securities and Exchange Commission of Pakistan (SECP) was held under the chairmanship of Federal Minister for Law and Justice Azam Nazeer Tarar to discuss measures for improving enforcement, reducing litigation backlog, and enhancing investor protection.
The meeting was held in pursuance of the committee constituted by the Prime Minister to review and propose reforms for strengthening SECP and improving its regulatory effectiveness.
The Committee, constituted to review measures for strengthening SECP, comprises the Federal Minister for Law and Justice as Chair, along with the Cabinet Secretary, Secretary Finance, Secretary Law and Justice, Chairman SECP, and Chairman Competition Commission of Pakistan (CCP).
Chairman SECP, Dr. Kabir Ahmed Sidhu, informed the meeting that over 2,000 cases related to SECP are currently pending in courts, leading to delays in enforcement and low recovery of penalties despite significant recoverable amounts. He highlighted the need for stronger enforcement powers and proposed the establishment of dedicated tribunals for speedy disposal of cases. He also suggested a shift towards a civil enforcement regime, particularly for market-related violations, in line with international best practices.
The Minister observed that the issue is not only legal but also systemic, emphasizing the need to strengthen SECP’s internal mechanisms and streamline processes.
The meeting also discussed the importance of digitizing processes to minimize human intervention and prevent fraud. SECP briefed participants on ongoing initiatives, including the transition to book-entry shares through the Central Depository System to enhance transparency and reduce paper-based risks.
It was agreed that SECP’s enforcement powers need to be strengthened, including through legislative amendments and decriminalization of certain offences to enable effective civil penalties.
The Minister directed SECP to present a comprehensive reform roadmap in the next meeting, including proposals on tribunal structure, recovery mechanisms, legal amendments, and measures to improve internal efficiency and enforcement.
