The Securities and Exchange Commission of Pakistan (SECP) Chairman Zafar Hijazi met the Board of Directors and members of the Demutualization Committee of the Karachi Stock Exchange Limited (KSE) to consider the operational matters pertaining to the integration of the stock exchanges.
He briefed the participants about the expected inauguration of the Pakistan Stock Exchange (PSE) on January 1, 2016. He told them that the ceremony for the said event would be a landmark event in the history of capital market in Pakistan which will be attended by the Federal Minister for Finance Muhammad Ishaq Dar. Prime Minister Muhammad Nawaz Sharif is also expected to attend.
The potential foreign strategic investors who have expressed their interest for partnership/collaboration with the Pakistani stock exchanges are also expected at the event. Hijazi said that the Pakistani capital market and its stakeholders have a number of expectations from the PSE, which will be a dynamic, well-governed and competitive stock exchange, better positioned to achieve the goals of business viability, divestment and technological innovation.
The SECP team explained the proposals regarding Base Minimum Capital, the transitional treatment of the market protection funds and business continuity of the brokers of Lahore and Islamabad Stock Exchanges, post integration. The participants of the meeting agreed in-principle with the proposals and appreciated the SECP’s efforts in this regard.
Later, the SECP Commissioner also held an open house session with the KSE brokers on the proposed draft Securities Brokers Regulations, 2015. The SECP team assured the participants that the new regulatory regime for brokers would be implemented through consultative approach and in a phased manner to ensure minimum disruption to the market. The timeline for submission of feedback on the draft regulations had already been extended by the SECP till December 7, after which various rounds of discussions will be held with the stakeholders to finalise implementation modalities to ensure smooth transition of brokerage houses from existing regime to the new regime.
