Senior SECP
officials, headed by the SECP Chairman, and Chairman, Karachi Stock
Exchange met with the Board of Directors, Management and Members of the
Karachi Stock Exchange on Wednesday.
The meeting discussed
various important market related matters including the proposed new
broker registration regime. The SECP briefed the participants on the
various significant steps taken by it to ensure sustainability
and providing confidence to the market participants and proposals that
were under discussions. It was emphasized that all reform measures that
have been introduced in the past and currently being considered were in
close coordination and consultation with
the relevant stakeholders and are designed to improve trading volumes
and enhancing retail participation in the stock market.
The participants were briefed on the SECP’s strategic objectives for the coming years. The key objectives highlighted include:
(i)Structural and regulatory reforms for the market;
(ii)Measures for investor education/awareness, restoration of investor confidence and expansion of market outreach;
(iii)Development of equity market in particular the derivative market,
(iv) Development of debt market,
(v) Development of commodity and currency markets;
(vi) Strengthening the capital market intermediaries for efficient operations and improved regulation;
(vii)Improving governance, risk management, efficiency and transparency in the market operations
(viii)Development of Islamic Products and Shariah-compliant investment alternatives; and
(ix) Image-building of the market.
While discussing the
concept paper on proposed new “Broker Registration Regime” the SECP
reiterated that the proposed regime would help in strengthening the
market by allowing only fit and proper brokers to operate
in the market. It will provide a framework where only qualified,
experienced, sustainable, technically and financially strong market
participants would operate as brokers. All these measures will help in
better protection of the interests of the investors
and would lead our market to another step closer to acceptable best
international standards. It was also clarified that the concept paper
was sent to the exchanges for soliciting comments and that the regime
will be finalized after giving due consideration
to the concerns and feedback of the stakeholders.
In addition, other
proposals such as, corporatization of exchanges, streamlining the
account opening process and corporate governance issues including
matters related with the Clearing House protection fund were
also discussed. SECP assured that all proposals are under the review
process and the future course of action will be taken in the light of
legal provisions with the aim to provide appropriate facilitation and
support to the market. The regulators agreed to
continue the consultative process and coordinated approach in future
also to ensure implementation of various market reform measures.
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