Dr Tariq Hassan, Chairman, Securities and Exchange Commission of Pakistan (SECP), has told the new board of directors of KSE that the prime task for the year 2005 is to change the perception about market manipulation, market abuse and undesired speculation. The Chairman along with Commissioner Shahid Ghaffar visited KSE and addressed the newly constituted Board of Directors of the Exchange on Thursday evening.
Welcoming Dr Hassan and Shahid Ghaffar, the Chairman of KSE Board of Directors, Yasin Lakhani, highlighted the recent growth of the market and ongoing market promotional activities of the Exchange.
He acknowledged the role of SECP in introducing a series of reforms at the Exchange, which is one of the contributory factors in the unprecedented growth of the market.
Lakhani laid emphasis on continuation of close and cordial relationship of the Exchange with the SECP in 2005 and requested the Commission to allow some more time to the Exchange to formulate its views on the draft rules & regulations, pertaining to the Exchange. He observed that more frequent consultative process between the Commission and the Exchange in the formation and strengthening of regulatory framework would supplement efficiency and accuracy.
Dr Hassan appreciated the positive contribution of the Exchange in adopting the first-generation reforms initiated by the SECP. Moreover, he commended the efforts of the Exchange in expeditious resolution of investors' complaints and implementing the SECP's time-bound action plan to completely phase out COT (Badla) by June, 2005. While recognising the role of KSE Board of Directors towards promoting governance and transparency in the market, Hassan advised that the Exchange itself should also adopt the Code of Corporate Governance in its true spirit and become a role model for the entire listed companies, in respect of good and objective governance. The SECP Chairman laid emphasis on strict and stringent risk management measures and improvement and strengthening of existing market surveillance and control function at the Exchange.
He said that risk management and market monitoring and surveillance are the paramount management functions of the Exchange and, being frontline regulator and self-regulating organisation (SRO), KSE should become more vigilant and alert in the present market surge.
He informed the KSE Board that the Commission is contemplating to carry out a regulatory audit of the Exchange to examine the Exchange's performance in conducting its functions as a SRO and frontline regulator.
Dr Hassan, however, advised the Exchange to ensure timely completion of the process of demutalization, and further assured fullest co-operation and support of the Commission to the Exchange in the areas of market development and introduction of new products.
Moin M Fudda, Managing Director of Karachi Stock Exchange, in his vote of thanks expressed gratitude to the Securities and Exchange Commission of Pakistan, especially the Chairman, Dr Tariq Hassan, and Commissioner, Securities Market, Shahid Ghaffar, for the continued guidance and support to the Exchange.
On behalf of Board of Directors and the management, he assured that in 2005 the Exchange would continue to make all possible efforts to accomplish its short-term goals of promoting new listings, increasing the free-float of existing listed companies, promoting the best international practices and improving the operational efficiency and automation level of the Exchange.
Comments
Comments are closed.