In line with its efforts to strengthen the capital market in Pakistan by further developing the derivatives market segment and providing investors with more diversified range of investment/hedging alternatives, the SECP has approved the Regulations Governing Index Option Contracts of the Karachi Stock Exchange (KSE). These regulations have been framed in line with best international practices to provide a framework for the launch of trading in cash-settled index option contracts. An option contract essentially gives its holder a right, but not the obligation to buy or sell an underlying asset on a future date at a predetermined price. Based on his expectations and prevailing market conditions, the option holder can either exercise this right and book profits from buying/selling the underlying at a favorable price than the market price or let the right lapse if he thinks the same will not benefit him. Like other derivative instruments, options are also tradable and the option ...

Financial Results: Pakistan Refinery Limited Thirds quarter ended March 31, 2012 Loss per Share is PKR (2.56) Financial year ended Jun 30, 2012 Profit before Taxation is PKR. 456 Million Loss after Taxation is PKR. (89) Million Nine Months ended March 2012

The Stock Exchanges (Corporatization, Demutualization and Integration) Law has been approved in a joint session of the Parliament today.  This landmark achievement was long awaited since the passing of the bill by the  National Assembly in October 2009.This law is part of the SECP’s efforts to bring about structural and regulatory changes through legal reforms in the non bank financial market and the capital market. Other draft laws awaiting approval include Securities Law, Futures Trading Law, SECP Law and Corporate Rehabilitation Law. The  Demutualization  law provides a framework for the corporatization, demutualization and integration of the stock exchanges and had been drafted after consensus with all the stakeholders. The law  requires the stock exchanges to be demutualized within 119 days of its promulgation in line with pre-defined timelines specified for completion of various milestones involved in the demutualization exercise. Presently th...

As part of its mandate to provide for increased investor protection and nurture a more informed and vigilant investors’ community, the Securities and Exchange Commission of Pakistan (SECP) has approved the waiver of monthly subscription fee for short messaging service (SMS) alert facility provided to investor account holders by the Central Depository Company (CDC). This facility gives investors an added level of convenience by providing account information via cell phones through SMS alerts. Alerts about activities such as transfer of securities, credit of corporate entitlements, pledge transactions, listing/delisting of securities in the Central Depository System etc., are provided. The SMS Alert Facility at CDC complements the Unique Identification Number (UIN) Information System being offered by the National Clearing Company which provides investors with a real-time access to monitor their trading activities executed through their UINs. These reform measures will a...

The Securities and Exchange Commission of Pakistan (SECP) has formulated the draft Public Sector Companies (Corporate Governance) Regulations, 2012 in order to improve the governance framework of Public Sector Companies (PSCs). These draft regulations have principally been based upon the Code of Corporate Governance, which has been customized in the context of PSCs in the light of the OECD’s Guidelines on Corporate Governance of SOEs. PSCs are public sector enterprises, operating in corporate form, which are directly or indirectly owned and controlled by the government, whether federal, provincial or local.. The draft regulations have been placed on the SECP website ( www.secp.gov.pk ) for soliciting the opinion, comments and suggestions from stakeholders and the public. These regulations have been designed in view of the distinct governance challenges faced by the PSCs in Pakistan. T he inefficiency of such companies is choking the economy and draining fiscal r...

As part of its mandate to develop the debt capital market in Pakistan, the Securities and Exchange Commission of Pakistan (SECP) has approved a regulatory framework to facilitate inter-exchange trades in listed term finance certificates (TFCs). A broker-to-broker (BTB) functionality has now been introduced at the Bonds Automated trading System (BATS). Earlier last year, BATS was revamped along the lines of Bloomberg-based E-Bond with various system enhancements aimed at facilitating price discovery in listed debt instruments and price negotiation between market participants in line with international standards. This system, however, was equipped only to support trading between brokers/investors of a stock exchange where such TFCs were listed and did not facilitate inter-exchange trading in TFCs listed on other stock exchanges. The newly approved BTB functionality will enable brokers to settle their inter-exchange trades directly with the National Clearing Company of Paki...

As a part of its mandate to regulate the capital markets and curb unfair market practices , the Securities Market Division of the Securities and Exchange Commission of Pakistan took enforcement actions against the market participants for non-compliance to the regulatory framework during the month of February. An order was passed against ex-fund manager of an asset management company under Section 15 A of the Securities and Exchange Ordinance, 1969. Moreover, a broker of LSE was penalized under Rule 8 of the Brokers and Agents Registration Rules, 2001, for misstatement and failure to provide information to the SECP. Further, show-cause notices were issued to four brokerage houses of LSE under various provisions of the securities laws. In addition, three orders and four warning letters were issued against directors/beneficial owners of listed companies under Section 224 of the Companies Ordinance, 1984, for late filing of returns of beneficial ownership. ...