SECP, KSE discuss integration of stock exchanges
ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) Chairman Zafar Hijazi on Thursday met with the Karachi Stock Exchange (KSE) board of directors (BoD) and Demutualisation Committee members to consider the operational matters pertaining to integration of the stock exchanges.
He briefed the participants about the expected launch/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 would be attended by Finance Minister Ishaq Dar, while Prime Minister Nawaz Sharif is also expected on the occasion.
The potential foreign strategic investors who have expressed their interest for partnership/collaboration with the PSE are also expected at the event. It was reiterated that the Pakistani capital market and its stakeholders have a number of expectations from the PSE, which would 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 07, after which, various rounds of discussions would be held with the stakeholders to finalise implementation modalities to ensure smooth transition of brokerage houses from existing regime to the new regime.