SECP denies nepotism

Securities and Exchange Commission of Pakistan (SECP) has issued a clarification on a news item published in Profit on June 24 titled “SECP pushes for favoured advisor”. SECP maintains that it is important to clarify that the SECP has neither flouted nor ignored any ruling of the honorable Supreme Court on the appointment of contractual employees. The facts of the case are presented as follows: The SECP is an autonomous ‘body corporate’ established under the 1997 Securities and Exchange Commission of Pakistan Act (SECP Act) and it is not an attached department of any ministry. Abdul Rehman Qureshi, an employee/member of the erstwhile Corporate Law Authority (CLA) was appointed as SECP Commissioner with effect from January 1, 1999 upon the establishment of the SECP under the SECP Act. He completed his two terms as Commissioner on December 31, 2004. He was also assigned acting charge of Chairman, SECP for a period of nine months. Qureshi being a regular employee of the SECP continued his service as Advisor till the date of his superannuation i.e., July 6, 2009. He was appointed Advisor by the SECP on contract beginning from July 7, 2009 for a period of two years as per provisions of the SECP Act and the SECP service manual. Meanwhile, he was also assigned the additional charge of Secretary to the Commission and also for its Policy Board as no substitute was available at the time. Qureshi possesses vast experience and expertise in the administration of corporate laws and is rendering a valuable service to the SECP in the capacity of advisor. The SECP is empowered to appoint any advisor in terms of the provisions of Section 9 of the SECP Act and as per the policy guidelines prepared by it in consultation with the Securities and Exchange Policy Board
and there has been no violation of the laid down procedure.