While ensuring full autonomy of the Commission, the 1997 Act provides for establishment of a Securities and Exchange Policy Board (Policy Board). The main objective of the Policy Board is to provide guidance to the Commission in all matters relating to its functions and to formulate policies in consultation with the Commission. The Policy Board is also responsible for advising the Government on matters falling within the purview of the Act and other corporate laws; and also to express its opinion on policy matters referred to it by the Government or the Commission.

According to the Act, the Policy Board should consist of a maximum of nine members appointed by the Federal Government, including five ex-officio members and four from the private sector. The ex-officio members are: (i) Secretary, Finance Division; (ii) Secretary, Law and Justice Division; (iii) Secretary, Commerce Division; (iv) Chairman of the Commission; and (v) a Deputy Governor of the State Bank of Pakistan (SBP). The Policy Board presently consists of: