The National Assembly standing committee on finance and revenue would recommend the government to withdraw CVT on trading of shares, and taxation on dividends, to boost the investor confidence. This was stated by Fauzia Wahab, chairperson of NA standing committee on finance and revenue while talking to media persons during her visit to Karachi Stock Exchange (KSE) here on Wednesday.
She also held a meeting with KSE board of directors members and discussed the prevailing situation in the share market and matters related to demutualisation of the stock exchanges. On this occasion, a detailed presentation was given by KSE regarding the performance of the exchange and its future plans.
Regarding demutualisation of the stock exchanges, she said that the NA body had approved the bill on demutualisation, and soon it would be tabled in the NA for approval. She said that the KSE is a vibrant market, and demutualisation is necessary to attract the strategic investors.
She pointed out that total 213 complaints had been received from small investors regarding pledging their shares in the banks by brokerage houses. She said that total amount of these shares was around Rs 103 million.
Regarding her meeting with KSE, she said that various issues, including demutualisation of stocks exchanges, were discussed. The meeting also discussed the issue of enhancement of small investors' base in the stock market, which currently stands between 0.2 million and 0.25 million.
She said that the stock market has started recovering after witnessing hard times. Almost all share markets had witnessed heavy selling pressure due to global recession. Some of the share markets had witnessed heavier losses than Pakistan. However, the local share market has started recovering and this has also been acknowledged by World Bank and Merrill Lynch, she added. NA standing committee member Rashid Godil also attended the meeting.
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