ISLAMABAD (February 18 2003) : Through a recently issued Statutory Regulatory Order (SRO) the Securities and Exchange Commission of Pakistan has handed over powers to the Executive Director (Specialised Companies Division) to grant/cancel licence, remove chairmen, monitor financial positions, issue directions and hold inspections of non-banking finance companies (NBFC).
Moreover, under the SRO 18(I)/2003, the SECP can supersede the board of directors and appoint a new person to exercise the powers of the board and can order special audit and issue related directions
The SECP, as it may from time to time deem fit to impose, hereby delegates the following powers and functions, and of the SECP, under the relevant Statutory Provisions applicable to non-banking finance companies (NBFC), to the Executive Director (Specialised Companies Division), namely:
— To accord approval of incorporation to an NBFC.
— To grant licence to commence business, subject to conditions as may be deemed fit.
— To issue direction or to modify or cancel the directions so issued.
— To remove chairman, director, or chief executive and to take all other actions under this section'
— To supersede the board of directors and appoint a new person to exercise the powers of board and to take all other actions under this section.
— To require to furnish any information etc.
— To monitor financial position of an NBFC and to order special audit and to issue related directions.
— To cause inquiry or inspection and to exercise any other related powers.
— To cancel the licence of NBFC and to disqualify an officer to hold office who may be held liable for the non-payment of fine.
— To move the court for winding up of an NBFC.
— To approve the scheme of amalgamation of NBFCs and to take all related actions.
— To adjudicate and impose fine and to exercise power to file a complaint in the court.
— To adjudicate and impose fine.
The SRO says that if the post of executive director (SCD) is vacant or the incumbent is not available at the place of duty, the powers and function delegated under this notification shall be exercised by the concerned 'commissioner' and the powers delegated above shall be exercised concurrently by the chairman of the Commission.