The Lahore Stock Exchange Managing Director and CEO Aftab Ahmad Chaudhry underlined that loss-making public sector enterprises can be transformed into profitable ventures, if these institutes are reorganised and listed on capital markets.
The LSE Managing Director was giving a briefing to the members of Lahore Economic Journalists Association (LEJA) at LSE Auditorium here on Friday. He tried to dispel the impression that capital markets in the country did not have enough depth to cater new companies.
Investors confidence was the only hurdle in the growth of capital market, he stressed.
Citing the example of PIA, he said that if other state owned enterprises like Pakistan Steel Mills (PSM) would also be listed on the capital market; their financial health could be gauged easily as enlistment on the bourse will bring transparency and accountability.
He also indicated that state owned enterprises have major contribution in Pakistani stock markets and the government was also earning handsome amounts through public listing. Highlighting the present bourse situation, Chaudhry pointed out that trade volume of all three stock exchanges was representing an alarming situation, which needed political and economic stability.
He stressed that there was a dire need of government will and investors’ confidence to restore the lost glory of the bourse. He said that the Lahore Stock Exchange had initiated a number of programmes to protect investors’ rights and ensure transparency. The LSE was the first bourse in Pakistan, which had set up a regulatory division and nominated a chief regulatory officer (CRO) to redress the complaints of investors.
Earlier, on most occasions it had been observed that only brokers were benefited in the arbitration process and this step would bring transparency in dispute resolution process. Chaudhry said that the LSE was also establishing an online database, which would be available on the LSE website and would indicate brokers’ financial health.
In addition, technology up gradation was underway to ensure transparency and accountability in the LSE.
He said that Lahore Stock Exchange had urged the Securities and Exchange Commission of Pakistan (SECP) to set up an audit trail system, so that all transactions could be completed in a transparent manner.
He pointed out that the LSE had proposed to setup an automated system, which would send a short message to investors in acknowledgment of their transactions. Speaking about the market potential, Chaudhry pointed out that the stock markets had huge potential. New companies and investors should come in the markets as it was to raise fund in stock markets than banking channels.
He disclosed that all these initiatives were in different phases and would be implemented in the next couple of months except where SECP approval was required.
The LSE MD also announced an annual merit scholarship for LEJA members for higher education a need-based scholarship for the children of LEJA members, which would be initially offered for matric or O level students and would later be offered for higher education.