Government of pakistan securities and exchange commission of pakistan notification

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(c)
Competence and Capability  
  
In determining a person’s competence and capability the following shall be considered:
(i) 
the directors should be individuals having management or business experience of at least 
five years at a senior level;
(ii) 
the directors and the external member shall have experience and knowledge in the field of 
banking, NBFCs, accounting and finance, law, internal audit or any other field ancillary to 
the capital market or financial market;
(iii) 
the chief executive should have a minimum experience of seven to ten years in a senior 
management position, preferably in capital market or financial market sector;
(iv) 
the chief executive should have completed master’s degree in business administration, 
accounting, finance, commerce , economics, statistics or mathematics from any university 
duly recognized by Higher Education Commission of Pakistan 
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[
or have completed 
professional qualifications in CA , CFA, ACCA, CMA] 
and demonstrated, through his 
qualification and experience, the capacity to successfully undertake the cognate 
responsibilities of the position; and
(v) 
the external member and senior management officers must be qualified professionals 
possessing relevant experience and certification relating to the job or assignment.
(vi) 
the persons must be fully conversant with the duties of chief executive, director, senior 
management officer or external member as the case may be, as prescribed under the 
statutes, rules and regulations, memorandum and articles of association and the code of 
corporate governance
  
(d)
Conflict of interest  
The directors , chief executive and external members of credit rating company shall not:
(i) 
be a director in any other credit rating company engaged in a similar business in Pakistan.
(ii) 
be a director, substantial shareholder or senior management officer in a company subject 
to rating by credit rating company
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[Provided that this condition shall not apply to:
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Inserted vide S.R.O. 582(I)/2020 dated June 29, 2020. 
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Substituted for the text “Provided that this condition shall not apply to: (a) nominees of the Federal or Provincial Governments 
on the board of any credit rating company;, and (b) external member on the board of the credit rating company subject to the 
condition that such external member shall not participate in rating of an entity, where he/she is a director, substantial shareholder 
or senior management officer ” Vide S.R.O. No.1223(I)/2019 dated October 10, 2019. 

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(a) 
nominees of the Federal or Provincial Governments on the board of any credit 
rating company;, and
(b) 
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[external member of the rating committee] 
of the credit rating company subject to 
the condition that such external member shall not participate in rating of an entity, 
where he/she is a director, substantial shareholder or senior management officer.]
In case of senior management officer, the credit rating company must ensure that no senior 
management officer shall head more than one functional area that give rise to conflict of 
interest within the organization. For example, the head of marketing and rating analyst shall 
not be the same person.