Federal Education Minister Shafqat Mahmood Thursday conveyed to the financial sector and the Securities and Exchange Commission of Pakistan (SECP) that corporate regulatory body has to play a major role in creating financial literacy among masses to attract them towards stock market.
Addressing the launch of the book entitled Savings and Capital Market here at the SECP Headquarters, Shafqat Mahmood said that the lack of understanding of capital market and its regulations among the people result in huge investment in real estate and immovable properties. Unless the financial literacy is improved, the masses would not divert their investments to stock market.
He said, "We are in process of preparing a new national new curriculum. The government would try its level best to include financial literacy as part of the new curriculum."
He said that the equipping the younger generation with financial literacy is imperative. It is also highly important to inculcate financial discipline, culture of savings and the benefits of investment in them.
He appreciated the SECP's efforts to promote financial literacy and awareness about investments. In order to improve the educational standards, the government is preparing a new curriculum, he said. The subject of financial literacy will be made part of the new curriculum.
Farrukh Sabzwari, the SEP chairman, Marius Vismantas, a senior representative of the World Bank, and Khalida Habib, head of the SECP's investor education department, also spoke on the occasion. The book covers subjects such as capital market of Pakistan, PSX, PMEX, NBFC sector, mutual funds, VPS, REITS, Islamic finance products and subjects of personal financial planning. The SECP published this book in collaboration with theThe minister advised the public not to invest in unregulated sectors. Instead, they should invest in regulated sectors such as stock market, mutual funds and insurance. In this way, their capital will be safe and that it would be transferred to their heirs in a transparent and easy manner.
He acknowledged the fact that awareness about investment in the capital market is limited. We have to intensify our efforts to promote financial literacy and awareness. He added that the SECP's role of regulating the capital market in a balanced banner is of critical importance.
The SECP Chairman, Farukh Sabzwari, said that investor protection is the SECP's top priority and we believe that the safe investor is the one who is financially literate and aware. He disclosed that the SECP is about to introduce a new broker custody model, which is more secure, protected and more transparent.
He said people ask me if it is SECP's job to educate people or it is there to regulate the market. "I believe that it should be SECP's top priority to make people aware and financially literate as this helps in achieving our main objective of maintaining discipline in the markets". He said that investor education is also important because people are shy of investing in regulated sector. "As of today, there are only 250,000 investors in stock market. Some 30 years back, the figure was 90,000. This shows that we couldn't sufficiently expand the investor base and that is why we need to educate people and need to expand our investor education program," Sabzwari said.
He added that we also need to educate our people about fraudulent sales agents. People should know what is miss-selling, what are their rights and responsibilities as investors, so that no one can deprive them of their hard-earned money by offering lucrative unrealistic profits.
The World Bank's lead specialist, finance and markets, Marius Vismantas said that the World Bank has been collaborating with the SECP over a number of initiatives for the development of capital markets and the lunch of this book is a one chapter of our mutual cooperation. He said that the financial literacy is vital for improving lives and it applies to everyone. The art is not making money but keeping it. Sooner we educate our youth about financial matters, savings, investments, the better, he added. It is imperative to achieve the objective of national development.
Earlier, the SECP's investor education department head and Executive Director, Khalida Habib said that regulators around the world have recognized the investor education is a way of providing investor protection and believe that the educated investors strengthen the regulators' watchdog role. The SECP, therefore, assigns a high priority to its investor education programme.
She briefed participants on the SECP's dedicated investor education programme "Jamapunji" that covers the entire non-bank financial sector. She said that this program helps investors understand the markets and enables them to make informed investment decisions. Through Jamapunji program, the SECP is reaching out to more and more investors every day in different places and in new ways.
Managing Director, Pakistan Stock Exchange (PSX), Richard Morin, Chairman Central Depository Company (CDC), Moin M Fudda, Member SECP's Shariah Advisory Board, Dr Tahir Mansoori, Executive Director, Higher Education Commission (HEC), Ahtesham Raja and other senior officials attended the event.
Comments
Comments are closed.