On June 25, 2004, two brokerage houses had manipulated share prices of Picic Investment Fund and Picic Growth Fund three minutes before closing of day's trading. "Enforcement is the most vital tool for consolidation of structural reforms. To improve the legal umbrella for prudent enforcement, we are setting up a corporate law review commission," he said. "It will start functioning next month to monitor the implementation of reforms," Dr Tariq said.
He said that SECP was strengthening its capacity of market monitoring and surveillance to check market abuses. "Price manipulation in shares would be effectively checked and SECP will take action against brokers allegedly involved in market abuse or price manipulation," he added.
He said that on the other side the Commission was running an investors' education programme to facilitate prudent and safe investment. Many initiatives, like seminars, training and use of media are being taken in this respect.
"All these initiatives are to develop the market in a sustainable fashion," Tariq said and added that other reforms, like demutualization and consolidation of the three stock exchanges, were underway. "The process would be completed within the stipulated time for which we have full support of the Adviser to Prime Minister on Finance and Economic Affairs Dr Sulaman Shah and he fully endorses the reforms", the SECP chairman said.
The SECP is looking forward to introduce most rational rates for corporate tax in the next budget (2005-06), Dr Tariq Hasan said.
"To provide fiscal incentives we are moving towards the concept of a holding company. For that a joint task force with the Central Board of Revenue (CBR) has been set up, under the chairmanship of former Justice Saleem Akhtar", SECP chairman added.