Government of pakistan securities and exchange commission of pakistan notification

Page 20 of 54 
shall ensure that such person is selected from relevant diverse fields of work 
with appropriate qualification and experience;]
(iii) 
the Commission may, if satisfied that a person is suitable for appointment 
as independent director grant its approval for the appointment of the 
selected person as independent director by credit rating company:
Provided that where the Commission is not satisfied about the 
suitability of the proposed persons for appointment as a director, it may refer 
the matter back to the credit rating company for proposing other names after 
following the due process.
(iv) 
unless provided otherwise, the term of the independent directors so 
appointed shall be the same as that of the other directors;
(v) 
an independent director may resign or be removed by the board of directors 
of the credit rating company with prior written approval of the Commission 
if such persons fail to meet fit and proper criteria:
Provided that the Commission may direct credit rating company to 
remove an independent director from his/her office if the Commission 
consider it appropriate to do so in public interest or in interest of capital 
market
(vi) 
any vacant position of an independent director shall be filled in the similar 
manner as provided for initial appointment of an independent director
(c) 
At least one independent director shall be present in the meeting of board of 
directors of a credit rating company to constitute the quorum;
(d) 
The chairman of the board of directors of a credit rating company shall be from 
amongst the independent directors;
(2)
The credit rating company shall ensure that;
(a) 
directors on its board shall not be involved in the rating process and shall provide 
an undertaking to this effect at the time of appointment as directors on the board:
33
[Provided that CEO being deemed director shall not be part of the rating 
committee]
33
Substituted for the text “Provided that CEO being deemed director may be part of the rating committee subject to the condition 
that his shareholding ,directly or indirectly, in the credit rating company is less than 5% of the share capital of the company .” Vide 
S.R.O. No.1223(I)/2019 dated October 10, 2019. 

---