Securities and Exchange Commission of Pakistan (SECP) and Pakistan Stock Exchange (PSX) share the vision of a robust and competitive capital market which would help make Pakistan the choicest investment destination in the region.
Addressing the PSX’s brokers, SECP chairman said for this purpose a number of initiatives such as creation of capital market hubs and expansion of capital market outreach are being implemented.
He also mentioned Pakistan’s improvement in compliance with global benchmarks specifically IOSCO Principles and the recent inclusion of Pakistan in Annual Market Classification Review by MSCI for a potential reclassification to MSCI Emerging Markets which bear extreme importance for Pakistani economy and investment prospects.
During his visit at PSX, the chairman SECP expressed SECP’s commitment towards playing its role as a facilitator as well as a regulator for the Pakistani capital market.
He emphasized SECP’s consensus-based decision-making approach and assured the participants of the meeting that SECP will maintain close interaction with market participants on all important matters in future as well.
He quoted the recent integration of stock exchanges, formation of Consultative Group and committees formed on proposed broker regime, derivatives market development and MSCI related matters as examples of this consultative approach. He further stressed that SECP will continue its best efforts to ensure that the image of the Exchange and rights of market participants are safeguarded and they are not subjected to undue pressure by any external agency. It was also pointed out that it was the collective responsibility of regulators and market participants to ensure that market’s integrity is safeguarded and any kind of unwarranted statements in media which could dampen investor confidence should be discouraged.
It was also communicated that the concept of Self-Regulatory Organization was being introduced through the SECP Amendments Act for establishment of a Federal Level Stock Brokers’ Association to provide the brokers with a recognized platform for protection of their rights and to promote high standards and professionalism among them. The Chairman SECP also expressed SECP’s resolve in empowering SROs and strengthening their market oversight for better discharge of their duties as frontline regulators.