SECP implements ‘Fit and Proper Criteria’

ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has implemented a ‘Fit and Proper Criteria’ for directors on the boards of the stock and commodity exchanges, the Central Depository Company and National Clearing Company in order to enhance the integrity and transparency of the Pakistani capital markets.
     
According to a statement of the commission issued here, the criteria has been devised to ensure that the Board of Directors, of organizations that serve as the cornerstone of the Pakistani securities’ markets, comprises of professionals that satisfy the highest standards of integrity and honesty, promote business ethics and inculcate practices of good corporate governance.
     
The criteria cover the following requirements relating to eligibility of a director: (a) Integrity, Honesty and Reputation, (b) Experience, Qualification and Management Acumen, (c) Solvency and Financial Integrity and (d) Others.
     
The Fit and Proper Criteria is perpetual in nature and the relevant entities shall ensure compliance with the provisions of the Fit and Proper Criteria.
     
All persons subject to Fit and Proper Criteria must submit any change in the submitted information through the relevant entity to the SECP.—APP