RECORDER REPORT

ISLAMABAD: The Senate Standing Committee on Finance has directed the Securities and Exchange Commission of Pakistan (SECP) and the National Accountability Bureau (NAB) to meet investors of defaulted ACE Securities Pvt Limited and file an application in the court for an ‘out-of-court settlement’ for deciding investors’ claims.

The investors have approached the Senate Standing Committee on Finance chaired by Senate Saleem Mandviwalla against the delay in the settlement of claims against the defaulted ACE Securities Pvt Limited.

Stock market investors stated Wednesday that settlement of claims of investors, following default of ACE Securities Pvt Limited, has been delayed due to Securities and Exchange Commission of Pakistan and National Accountability Bureau (NAB).

Stock broker Haji Ghani Usman and another investor stated that the solution was to clear the payments to investors through out-of-court settlement. They added that NAB has been unable to do anything while SECP promised to play a supportive role last year and urged the committee to get information from them what has been done by them.

Haji Ghani Haji Usman said that one of the accused has expired while other one has fled to Canada. They posed a question if he also dies what will happen to the settlement.

“I have mediated several cases in my life but here NAB and the SECP are not cooperating, as funds are available but out of court settlement is required,” he added.

They informed the committee that the default case relates to 2015 and an application for plea bargain was filed in 2016 but both the SECP and NAB were only interested filing reference in the court and not to settle the amount.

Another stock broker Lalani said that out of 400 claimants, around 198 persons had investments up to Rs100,000, “These cases can be settled as they are small investors and we can move ahead to clear dues of higher amount.”

Chairman of the committee Senator Saleem Mandviwalla along with Senator Mohsin Aziz of PTI and Senator Saud Majeed of PML-N said that the case of Ace Securities was not related to corruption but default, if the stock broker was willing to clear investors’ money then why it is being delayed.

The committee directed NAB and SECP to meet the investors before the next hearing and file an application in the court for an out of court settlement.

The committee took up alleged Multan Metro Bus money laundering case soon after the SECP officials left the committee room and after considering the reply submitted by the SECP over the matter, the senators decided to call the same officials for explanation.

“This reply looks like an eyewash, we should call them in the next meeting, so that they will present us a clear picture,” Senator Mohsin Aziz said.

The committee was also briefed by the officials of NAB over development in release of Rs480 billion in one go to clear circular debt in 2013.

The senators directed NAB to inquire two things - who paid the amount in one go and who finalised the amount of Rs480 billion in terms of circular debt.

The SECP has also submitted monthly progress report to the committee on the Multan Metro Bus Project.

According to the SECP, to comply with the Senate Standing Committee’s direction, the SECP had interacted with the China Securities Regulatory Commission (CSRC) for sharing of its investigation report through weekly requests vide emails dated January 29, 2018, February 2, 2018 and February 16, 2018.

The CSRC in its response vide email dated February 22, 2018 has shared the attached final translated version of CSRC’s announcement for Yabaite and has further stated that they are consulting with different ministries for their opinions and will provide the information/ documents sought by the SECP at earliest convenience, the SECP added.