The Federal government has introduced an amendment in the SECP ACT 1997 in the National Assembly, which will be called the Securities and Exchange Commission of Pakistan (Amendment) Act 2020 if the amendment is approved.
The bill, obtained by The Correspondent, proposes changes to the appointment process of the top leadership of the SECP, along with changes to powers, jurisdiction, and tenure of these positions.
To read the full text of the proposed amendment click (here)
The primary change proposed by the amendment is that no person will be appointed as Chairman of the SECP without an experience of at least 20 years.
“No person shall be appointed as Chairman unless he is a person of integrity, expertise and exemplary reputation having at least twenty years’ experience, including five years at a senior level in any relevant field, including but not limited the securities market, law, accountancy, economics, finance, insurance and industry,” the amendment stated.
The Chairman and Commissioners will hold office for three years and will be retired at the age of 65 years, whichever is earlier. However, their tenure can be extended for two years by the federal government on the basis of performance. This would be a one-time extension and such a person would not be eligible for further extensions or reappointment in the SECP.
The federal government also laid down the age and experience limit for the Commissioner: he should have an experience of at least 15 years including five years working at a senior level in the relevant field.