A three-member bench of the Supreme Court on Thursday directed Secretary Finance to submit a detailed report within a fortnight to a petition challenging the appointment of Muhammad Ali Ghulam Muhammad as Securities and Exchange Commission of Pakistan (SECP) chairman. The bench comprising Justice Mian Shakirullah Jan, Justice Anwar Zaheer Jamali and Justice Tariq Parvez re-issued notices to all respondents- the federal government through finance secretary, SECP chairman, policy board secretary, finance division, commissioner (company law division) and SECP’s human resource department director to file replies in the matter as petitioner’s counsel Afnan Karim Kundi had filed an amended petition with a plea to the court to stop the incumbent SECP chairman from working. The court, however, observed that the defence must be given a chance to present his point of view before the court. Appearing on notice, Finance Secretary Abdul Wajid Rana requested the court to grant him some time to file reply, as he assumed charge of his office a week ago. He assured the court that its orders will completely be complied with and implemented.
The petition challenging the appointment of SECP chairman was moved by former chief of the SECP’s legal department Muhammad Ashraf Tiwana, requesting the court to ask the government to immediately appoint a new chairman and commissioners to complete the constitution of the commission with persons of integrity, competence and professionalism who have no direct or remote conflict of interest and are not nominees and cronies of lobbies and interest groups in regulated sectors. According to petitioner, Muhammad Ali, who was appointed as SECP chairman on Dec 24, 2010 is the largest shareholder and director of a private brokerage firm — Fortune Securities Limited. The petition highlighted some regulatory failures of the SECP, including the stock market crashes of 2005 and 2008 and debacle of the National Insurance Company Limited. “Despite efforts by parliamentary committees, culprits in the 2005 market crash have not yet been identified, lest being punished. Similarly, the causes of the 2008 market crisis have not been investigated,” the petitioner said. The petitioner requested the court to declare the appointment of individuals who are either members of stock and commodity exchanges or brokers, directors or shareholders of brokerage companies as commissioners or chairman of the SECP as against the law, equity, justice, fairness, public policy and ultra vires of the law, constitution and principles of natural justice.
