‘Govt encourages new products in capital market’

KARACHI: The government is determined to facilitate introduction of new products in the capital market, said Securities and Exchange Commission of Pakistan (SECP) Chairman Farrukh Sabzwari.

Mr Sabzwari, along with other SECP officials, had his first interaction with members of the management of Pakistan Stock Exchange (PSX) and stockbrokers on Thursday.

He assured that the government was interested in making PSX a viable platform for meeting the public sector infrastructural financing needs.

The SECP team met the management and stockbrokers separately.

Apart from the office-bearers of PSX, Stock Brokers Association’s senior officials including the AKD Securities, Arif Habib Securities, BMA Capital, JS Securities, Topline Securities etc were present in the meeting.

During the two-hour long discussion, issues and suggestions were presented by the brokers to the chairman which included easing of certain regulatory frameworks and reducing the cost of doing business.

The SECP team collected suggestions from the brokers and agreed to look into them. The PSX Association had already submitted their proposals while the corporate brokerages demanded promotion of derivatives market in the country.

Chairman SECP assured the brokers that the government was interested in resolving all issues and clear impediments on a priority basis.

“As for the derivative market, it was the responsibility of market players to introduce new products. We as the regulator will facilitate you and address any issues that would restrict the launch of such products,” Mr Sabzwari said.

He also invited the brokers to work for increasing the investors base in the capital market.

Earlier in the meeting with the management of the PSX, the SECP team stressed that the capital market has a pivotal role in boosting economic activity in the country.

Both sides discussed measures required for further development of market through timely introduction of new products, developmental reforms, measures for investor protection and efforts for expanding market outreach through investor education and awareness initiatives.

It was agreed that SECP and PSX management would provide the platform to promote new listings of equity issues and SMEs.