ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has introduced the amendments in its code of corporate governance in order to promote good governance and to make implementation of rules and regulations of the listed companies, ARY News reported.
Following the amendment, the relaxation has been made in the eligibility requirements for the chief financial officer (CFO) and the head of internal audit (HOIA) for listed companies.
Furthermore, the experience requirements of the CFO have been reduced from five years of handling financial or corporate affairs of a listed company or a bank or financial institution to three years of experience in a public practice firm or in managing financial or corporate affairs of a company.
Similarly, the experience requirements for HOIA have also been reduced from the earlier restrictive five years of relevant audit experience to three years in audit, finance or compliance function.
The amendments have been made taking into account the lessons learnt from the practical issues and considerations relevant to the listed companies and to ensure that it reflects changing governance concerns, practices and economic circumstances and best international practices.