The Commission also tabled a fresh list before the National Assembly Standing Committee on Finance containing names of 10 out of 60 brokers/financial institutions responsible for the crash against whom hearing has been completed and judgement would be issued soon.
However, the SECP effort failed to satisfy the standing committee, which constituted a 5-member subcommittee to thoroughly probe the financial scam that jolted the stock market.
The standing committee on finance met here on Monday in the Parliament House, with Anwer Ali Cheema in the chair, to look into the report of the Task Force on 'Review of the Stock Market Situation March 2005'.
The SECP Chairman informed the committee that it had completed hearing of ten brokers and financial institutions and judgement would be issued soon.
Meanwhile, the committee members expressed the view that the SECP, despite having expertise and mandate to regulate the trading at the stock exchanges throughout the country, had failed to play its role as regulator.
It is worth mentioning that the standing committee has already rejected the PM's task force report and had demanded of the SECP officials to present complete trading lists and disclose the name of persons who were behind the dirty game.
Talking to Business Recorder, Ghulam Murtaza Satti, from Pakistan People's Party Parliamentarians, said the committee members had registered their dissent over government's lethargic approach.
He said the Commission had completely failed to expose four brokers who were involved in stock market's manipulation and swindled small investors.
Satti said the manipulators had complete blessings of SECP officials. "How is it possible that the SECP was not aware of the whole game? The manipulators definitely have blessings of SECP authorities," he added.
Expressing dissatisfaction over SECP efforts to unearth one of the biggest financial scam, the standing committee also formed a 5-member subcommittee headed by MNA Tufail Ahmed to look into the stock market crash and fix responsibility.
Besides Tufail, the subcommittee consists of Naveed Qamar, Ghulam Murtaza Satti (PPP-P), Liaquat Baloch (MMA) and Kashmala Tariq (PML).
The Securities and Exchange Commission of Pakistan, Satti said, would be bound to provide every required data to the subcommittee to expose the real manipulators.
Naveed Qamar also expressed dissatisfaction over SECP efforts. However, he said, the SECP Chairman had informed the committee that the Commission has started taking actions against the manipulators, and top ten brokers had also been served notices.
Naveed said SECP had prepared another (fresh) list, but added that 'big fish' had still not been held responsible for the crash.
He said, "I am still not happy with the formation of the subcommittee. It is another delaying tactic to play down the crash which left thousands of small shareholders groping in the dark."
Meanwhile, a statement issued here said that the subcommittee would also examine subsequent actions taken by SECP on the recommendations of the task force and to suggest amendments in the Securities and Exchange Commission of Pakistan Act to strengthen it for effective monitoring of stock market activities.
The committee observed that had the SECP monitored the unnatural situation and activities prevailing at that point of time, small investors in particular would not have been deprived of their hard-earned money.
National Assembly body Chairman Anwer Ali Cheema asked the SECP to devise a strict monitoring and risk management system to tackle the reoccurrence of such scams in future.
SECP Chairman tat SECP was handicapped due to flaws in the existing laws under which it was established.
Despite the prevalent monitoring systems, SECP could not initiate stern action against those brokers who were evidently involved in the manipulation of stock market.
Tariq apprised the committee that necessary steps had been taken to phase out badla finance responsible for the market crash; stock exchanges were being de-mutualised and a Universal Client Identification number was being issued to every investor to track his investment activities.
SECP had been actively engaged in removing imperfections and distortions from the markets strictly in accordance with the charter of its duties. However, exceeding its mandate would rather adversely affect the market, he added.
The legislators asked SECP Chairman to follow the example of Stock Exchange Commission of UK that effectively monitors the on-going activities in the market and ensure security to the investors. The committee also asked the SECP to gear up the implementation of the administrative and policy recommendations of the task force.
The meeting was attended by Saifullah Khan Tiwana, Riffat Amjad, Tufail Ahmad, Naveed Qamar, Ghulam Murtaza Satti, Khalid Iqbal Memon, Mohammed Laeeque Khan, Liaquat Baloch and Ayaz Sadiq.