Report on demutualisation of bourses on September 2; KASB Direct online trading system launched

The joint task force of the Securities and Exchange Commission of Pakistan (SECP) and the Central Board of Revenue (CBR) on corporate sector would formulate proposals to improve the efficiency of vital sectors of economy.
SECP chairman Dr Tariq Hasan said this while talking to Business Recorder here on Tuesday after the launching ceremony of the KASB Direct online trading system in Islamabad.
The SECP chairman said that the CBR has nominated Member, Tax Policy and Reforms, M.S. Lal as member of the taskforce, while the SECP has nominated SECP Commissioner Abdul Rehman Qureshi as its member.
These members would further select members from private and public sectors for devising proposals for the corporate sector and submit its recommendations before the budget 2005-06.
The constitution of the taskforce is an important step towards the betterment of corporate sector, which would also examine reduction in corporate tax rates in the next budget.
Responding to a question, he said that the expert committee would submit its report on demutualisation of stock exchanges on Thursday (September 2).
In his speech, Tariq Hasan stressed upon the importance of online stock trading to increase the accessibility of capital markets in Pakistan, as they are presently restricted to Karachi, Lahore and Islamabad.
While appreciating efforts of the KASB Securities in launching Pakistan's first software-based online stock trading system, he highlighted the importance of a secured and comprehensive online trading framework in educating and expanding the investors' base beyond the three main cities of the country.
Terming investment in stocks through online trading as secure, he said these type of trading facilities are very much needed in Pakistan.
The SECP chairman said that companies providing facility of trading through Internet should be very careful in suggesting selection of scrips for buying and selling.
They should protect the interest of investors. For this purpose, independent and accurate research-based information should be provided to investors.
The chairman said that cost-effective measures are necessary to cater the retail investors.
However, trading through Internet would provide a number of opportunities to the retail investors. The lack of infrastructure and facilities does not attract small investors.
He said that the retail investor growth is narrow in Pakistan as 35-40 shares amount 95 percent of the total capital market.
The Internet revolution has created opportunities for the financial industry, which could be used to attract retail investors in the stock market.
It is the responsibility of the brokers to attract investors as household savings should be invested in a more productive manner.
KASB Securities (Private) Limited chief executive Shabbir Hamza Khandwala, in his welcome address, highlighted the importance of broadening the investors' base by providing equity statistics in Pakistan and USA and elaborated the history of Internet trading and rationale for its introduction in Pakistan.
He explained that the KASB Direct is a software-based application and it is the fastest online trading system as transactions can be executed in few seconds.
It provides access not only to ready-markets but also to future, provisional and TFC counter. It is a cost-effective solution as an investor can trade at 5 paisas per shares irrespective of value of the scrip.
Shabbir further elaborated that the system provides all security features connected with partners, namely Worldtel and Cybernet, to provide quality Internet services to the KASB direct clients.
He informed the audience that the KASB intends to boost the countrywide presence of the KASB Bank, which has 21 branches and Cybernet with 20 outlets to facilitate investors to open their accounts with the KASB Direct.
KASB Direct manager Rizwan Khan gave a brief overview of the product, which allows investors 24-hour access to their account balances, portfolio holdings and statements.
He added that the system offers investors a wide variety of options and, besides various value-added features, it provides up to minute stock quotes, price alerts, news and notices, executing market orders, stop loss orders and limit orders.
Investors also have an opportunity to avail the benefit of leveraging by trading on margin through the KASB Direct backed by state-of-the-art risk management system.
Investors will have an access to a wide distribution network for the KASB Direct. In addition to the 21 branches of the KASB bank, this system will be available from four branches of the KASB Securities as well as 20 branches of Cybernet.
A website - www. kasbdirect.com - has also been created for the investors to benefit from one of the most reliable and resourceful research team.
The ceremony was attended by top government officials, diplomatic dignitaries and leading corporate executives including KASB Bank Limited chairman Nasir Ali Shah Bukhari.