SECURITIES AND EXCHANGE COMMISSION ACT, 1997

Section 12 – Security and Exchange Policy Board

The proposed amendment seeks to appoint ex-officio the Finance Minister or, in his absence, the Advisor to PM on finance, as the case may be as member and chairman of the Securities and Exchange Policy Board by enhancing the number of its members from nine to ten.  The Chairman shall have the casting vote in the event of a tie.

Section 20 – Powers and Functions of the Commission

It is proposed that the professionals who provide services within the financial services markets would be regulated by the SECP.

Section 33 – Appeal to Appellate Bench of the Commission

The amendment proposes to limit the scope of appeals to an Appellate Bench of the Commission.  Appeals against following would not lie before the bench after the amendment:

1. an administrative direction issued by a Commissioner or an officer of the Commission;
2. an order passed in exercise of the powers of the revision or review;
3. a sanction provided or decision made by a Commissioner or an officer of the Commission to commence legal proceedings in a court of law; and
4. an interim order which does not dispose of the entire matter.

Section 40A – Penalty for Violation of Rules and Regulations

This new proposed section seeks to make a contravention of a rule / regulation made under Section 39 or 40 punishable with a fine which may extend to Rs. 10 million.  Where, such contravention would be a continuing one, a further fine extending to Rs. 100,000 per day may also be imposed.

Section 40B – Power of the Commission to Issue Directives, Circulars, Guidelines,

The commission, after the proposed amendment, would have the powers to issue directives, codes, guidelines, circulars or notifications as are necessary to carry out the purposes of the Act, the rules and regulations made there under and all laws administered by it.

Securities and Exchange Ordinance, 1969