SECP’s Regulatory Tactics Under Scrutiny Amid Financial Irregularities

Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has come under fire for compelling market institutions to fund an international conference, raising significant concerns about its regulatory independence. The move comes amid ongoing scrutiny over unauthorized salary increases and illegal payments to a commissioner closely connected to an influential federal secretary.

Sources revealed that the SECP exerted pressure on key financial market players, including the Pakistan Stock Exchange and the National Clearing Company, to contribute four million rupees each toward the conference, slated for November. The funding is intended to cover the costs of a five-star venue, hotel bookings, and travel expenses for over two dozen SECP officers.

Resistance from some private entities was initially reported due to budget constraints; however, the SECP’s insistence ultimately secured the required contributions. Business insiders have expressed concern over the SECP’s repeated demands for event funding, questioning the agency’s independence and motives, which are critical for maintaining public trust.

A recent audit report has heightened concerns, revealing that the SECP withheld nearly 14 billion rupees from the Federal Consolidated Fund, in violation of the Public Finance Management Act. This finding has sparked serious questions about potential financial irregularities and oversight failures within the organization.

In response to these developments, the Prime Minister and Finance Minister have ordered investigations into the audit findings. They have also mandated the withdrawal of all perks and benefits from the SECP chairman and commissioners pending further review.

Furthermore, the Senate Standing Committee on Finance has recommended amendments to revoke the authority of the SECP and State Bank of Pakistan boards in setting executive salaries, suggesting that such decisions should require cabinet approval. Despite these recommendations, no action has yet been taken.

The SECP has declined to comment on the allegations, adding another layer of complexity to the oversight challenges facing the regulatory body.