The Capital Markets Committee, which was constituted by the Securities and Exchange Commission of Pakistan (SECP) to find ways to break the market bottlenecks, has submitted its report to the regulator.
The Committee which was formed earlier this month comprised of representatives of the stockbrokers, mutual fund association, professionals with banking experience and CEOs of Pakistan Stock Exchange (PSX), National Clearing Company Private Limited (NCCPL) and Central Depository Company (CDC) being the frontline regulators.
In a meeting headed by the Chairman SECP and Commissioner Securities Market, the committee and its subcommittee chairs presented detailed recommendations in areas of risk management, leverage market products, ease of doing business/cost of doing business and broker business model.
The proposals presented were prepared after extensive consultation with other market professionals and small brokers from Lahore and Islamabad.
The SECP said that it will assess all the recommendations holistically in the best interest of the capital market and its stakeholders. Upon suggestions of the committee, a team has already been formed to recommend measures for activating trading of government debt securities on the stock exchange, rationalization of associated costs and suggest measures for addressing any practical difficulties.
Its additional responsibilities include identifying the issues being encountered in the deliverable future contracts, analyze the effects of recent reforms and provide recommendations to address any genuine concerns or practical difficulties.
Moreover, it will also point out regulatory requirements, which may be hampering the growth of the market or creating unnecessary burdens and provide suggestions for reform measures along with any other suggestions deemed appropriate.
The SECP stands committed to introducing reforms focused on ease of doing business, reducing the cost of doing business, regulatory facilitation and market development that builds investors’ confidence.
