Law: Securities and Exchange Commission of Pakistan Act, (XLII of 1997)

Section: 33

  Summary Case: Pakistan Poverty Alleviation Fund (PPAF) challenged SECP’s refusal to approve the appointment of its Chief Executive. Background: PPAF applied to SECP for prior approval on September 7, 2021. SECP refused through a letter dated September 8, 2021. PPAF first challenged the refusal before the Islamabad High Court, which dismissed the petition on December 9, 2022, holding that PPAF had an available remedy of appeal under Section 33 of the SECP Act, 1997. PPAF then filed the appeal before the SECP Appellate Bench, but the Registry refused to register it. PPAF challenged that refusal in another writ petition, W.P. No. 322/2023, which was admitted by the Islamabad High Court and remains pending. Before the Appellate Bench, PPAF argued that: No hearing opportunity was given before the refusal letter. SECP went beyond PPAF’s application by treating it as a public sector company under the Public Sector Companies (Corporate Governance) Rules, 2013. PPAF was willing for the matter to be sent back to SECP for a decision on merits after providing a hearing. The Bench noted that the relevant Government ministries/divisions were also parties to the constitutional petitions, indicating that the matter involved their interests as well. Decision: The Appellate Bench held that the impugned letter could not be treated as an “order of the Commission.” Therefore, it did not decide the merits of the dispute. The matter was referred to the Divisional Head/Executive Director, Licensing and Registration Division (formerly Company Law Division) to decide it afresh through a speaking order, after giving all concerned parties an opportunity of hearing. Bottom line: The appeal was disposed of without deciding whether PPAF is a public sector company or whether its CEO appointment should be approved. SECP’s concerned division must reconsider the matter on merits, hear all parties, and issue a reasoned decision.     ORDER    This Order is in Appeal No. 3(14)Misc/ABR/23 (Objection Case) filed by M/s. Pakistan Poverty Alleviation Fund (the "Appellant") under section 33 of the Securities and Exchange Commission of…