Chairman of PSX, Muneer Kamal has said that the bourse is awaiting regulatory approvals to enhance its products’ portfolio in order to attract investors towards the recently demutualized capital market.
He was addressing a ceremony of the British Council’s 70th anniversary in Pakistan as stated by an English Daily.
At the moment, PSX offers two products as a trading platform, including ready market and single-stock deliverable futures. The PSX has already developed single options and cash deliverable futures.
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The existing ready market product has a limited number of participants and a limited turnover.
Kamal, however, said that the market is behaving in a rational manner and new products will provide investors with choices and help in making investment decisions. He shared that the central role of the Securities and Exchange Commission of Pakistan is regulation of the capital market and the securities industry.
He added that the bourse will launch the exchange traded fund (ETF) within the next three months to attract investors and broaden the market scope. ETF will allow investors to have exposure to a larger number of listed companies through a single transaction.
Kamal further said the role of foreign institutional portfolio investors in the dynamics of Pakistan’s capital market has increased as their holdings have crossed 30 percent of the free float of listed companies’ shares.
The budget proposals have also been shared with the government, added Kamal, which will also help improve the market’s performance.
Via: The News
