Addressing officers and officials during his visit to SECP Headquarters on Monday, Finance Minister Ishaq Dar has called upon SECP to focus on development of Non-Banking Finance Institutions, Insurance sector and DFIs as these three sectors could prove to be a major contributor to economic advancement in the country.
The minister said establishment of the SECP was his personal effort in his tenure as finance minister in the late 90s and he felt proud of this institution. He advised the commission to take steps for the development of Pakistan Mercantile Exchange which was set up a decade earlier but is still at infancy stage. He emphasised acceleration in development of non-banking financial sector and asked the commission to come up with proposals in this regard as a priority.
On this occasion, Dar also highlighted the importance of Real Estate Investment Trust (REITS), saying it was an important medium of capital formation and channelizing the general public savings towards developing the real estate in Pakistan.
“I am pleased to know that the SECP has approved first rental REIT of one of the best and busiest shopping mall in Karachi and its public offering is expected in March 2015.”
Dar said it was significant that the commission was now fully functional after a long time and that efforts were made to select independent professionals with known integrity. The commission, he said, with ample human capital and technology was ready to meet the challenges of modern times.
“I have permitted nomination of six officers for training at US Securities Commission as a special case, this is a proof of my commitment to the commission,” the minister remarked.
Dar advised the commission to take initiatives to educate investors and to make efforts for the development of mutual fund industry so that common people may invest in capital market through mutual funds. He categorically stated that commission should have zero tolerance policy for market manipulation and insider trading.
“The commission should appoint people of high standing on Boards of Stock Exchanges who may bring transparency in stock exchanges and are helpful in de-mutualisation of the Exchanges.” He also emphasised disbursement of dividends on bonus shares which he said would encourage small investors.
