The Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Akbar Abdullah, has urged the Securities and Exchange Commission of Pakistan (SECP) to introduce such reforms which would discourage the monopolistic regime in the stock market so that random and unexpected fluctuations are checked and transformed into share prices stability so that prices should vary in real terms and not due to speculation.
In a press statement, he appreciated the dynamic role of Prime Minister Shaukat Aziz in directing the SECP to introduce reforms in the stock exchanges, and hoped that it would help in restoring the confidence of small investors.
The FPCCI vice president said that reforms ensuring stability of share prices would bring positive change in capital market and would boost the level of confidence of investors who seem to be reluctant after the crash in the stock market.
Akbar said that stock market has a great attraction for investment in view of the fact that people realise it as a productive way to make money which also reflects their confidence in stock market. Thus, a huge responsibility lies on the stock exchange management and regulatory bodies like SECP to ensure the rights of the investors, he added.
He said: "The reforms should aim at transforming the stock exchange into a most reliable market for investment."
The FPCCI vice president said that although the stock market in countries like Pakistan is not considered as real indicator of economic development, still it is regarded as one of the most attractive hubs of capital activities.
He advised the SECP to discourage speculative measures to restore the confidence of the small traders.
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