The Securities and Exchanges Commission of Pakistan (SECP) is likely to waive listing fee of the stock exchanges for one year for companies under ''over-the-counter'' (OTC) market, official sources told Business Recorder here on Monday.
"The SECP has been approving various amendments/relaxations in the OTC regulations to encourage listing of securities and also to facilitate companies with less stringent listing regime," sources said. Besides, a relaxed code of corporate governance is applicable on companies listed on the OTC market. Sources said that SECP has further advised Karachi Stock Exchange (KSE) to come up with proposals identifying hindrances and bottlenecks in the activation of the OTC market and suggestions to eliminate them.
They said that the SECP would develop a strategy subsequent to the completion of the consultation process with KSE and with leading brokerage houses and investment banks. The Commission had earlier undertaken an exercise and identified few private and public companies having substantial paid up capital but not listed on any stock exchange.
Therefore, the matter has been taken up with the stock exchanges and sector-wise list of such companies was provided to them and KSE has invited all these companies to convince them through dialogue for enlisting.
Former chairman of SECP Board had suggested that the regulator itself should approach these companies and persuade their management to go for listing. Sources said that SECP and stock exchanges have planned to hold investors'' education seminars and training and the first training session was conducted in January last. Further, the SECP in conjunction with KSE and CDC has planned to organise national and international road shows during 2008, and the first road show was expected on March 15 in Faisalabad.
Sources said SECP has been advised that it should collaborate with the Mutual Funds Association of Pakistan, KSE and brokers, and devise a schedule indicating dates and location of the investors'' education seminars and training for 2008.-M G.