Regulatory failure

WHEN a regulator fails to do its job, the consequences are felt by everyone, even if in ways too subtle to notice directly. The Securities and Exchange Commission of Pakistan (SECP) is the apex regulator for all financial markets and incorporated companies in the country. Next to it is the front-line regulator, the Pakistan Stock Exchange (PSX), whose job is to regulate listed companies and trading activity on the stock market floor. And the State Bank of Pakistan (SBP) is the main regulator…