Senate body asks SECP to avoid crash

Posted on 11.29.06 by StockPK Team @ 12:18 pm    

The Senate Standing Committee on Finance, Revenue and Statistics has directed the SECP to regulate strictly and vigilantly so that eventualities like the stock market crash of March-2005 could be avoided in future.

The Committee, which met at the Parliament House on Tuesday under the chairmanship of Senator Ahmed Ali, directed the SECP to plug the loopholes in the system, protect the interest of small and medium investors and watch the activities of banks and brokers in the stock market.

This is the only way to ensure that the capital markets would perform their essential function of supporting the industry, it observed.

Earlier, the chairman SECP gave a presentation to the committee regarding the report compiled by the Task Force constituted to probe into the March-2005 crash, said a press release.

He informed the committee that notices have already been issued to the brokers who traded in huge volumes in complete disregard to rules and regulations, something which ultimately brought the crash.

Apart from chairman of the Committee Senator Ahmed Ali, the meeting was attended by Senators Nisar A Memon, Prof Khurshid Ahmed, Asif Jatoi, Safdar Abbasi, Dr Khalid Mehmood Soomro, Pari Gul Agha, Muhammad Ishaque Dar and Muhammad Amin Dadabhoi, chairman SECP and senior officials of the Ministry of Finance.

Source: The News