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 for all banks. It is the job of these three entities to ensure that companies under their watch are not breaking the law, or taking risks that threaten systemic stability, or concealing material information from their shareholders (in the case of listed companies), or engaging in insider trading. The job is not easy and requires constant vigilance. It also requires moral courage. What reportedly happened at Unity Foods, a listed company operating in edible oil and rice, now in the crosshairs of the FIA, was a stark example of regulatory failure. The company is accused of having discrepancies totalling more than Rs44 billion between its published accounts and internal record. The SECP reportedly
