The Securities and Exchange Commission of Pakistan (SECP) and Institute of Capital Market (ICM) along with key non-bank financial market stakeholders have developed a countrywide 'Investor Education and Awareness Programme' to be launched from July 13, 2012. In this regard, a ceremony would be held at Karachi Stock Exchange (KSE) on Friday (today).
The SECP Chairman will deliver speech on 'Why Investor Education and how to go about it?' in the opening session of the programme while Commissioner SECP Imtiaz Haider, Executive Director SECP Akif Saeed, CEO of ICB Javed Hasan and others will also speak on the occasion. The investor education is widely recognised as being crucial for sustainable growth of the financial markets, ensuring investor protection and bolstering confidence in the markets. It helps investors make informed decisions and identify unscrupulous investment schemes and unfair market practices. More importantly it improves outreach of financial markets and assists in brining new investors and funding into the markets.
In Pakistan, lack of adequate financial literacy and capability coupled with inadequate level of understanding and due diligence makes investors vulnerable to fraudulent activities and unwise investment decisions as they ignore basic prudent measures before entering into a contractual agreement with a financial service provider. Comparative regional statistics reflect that Pakistan has the lowest indicators for saving and investment environment, such as insurance penetration, participation in pension and mutual funds, and low investors base in the capital markets resulting in low volumes and lack of liquidity.
Keeping in mind, the SECP and ICM along with key non-bank financial market stakeholders namely Karachi Stock Exchange, Lahore Stock Exchange, Islamabad Stock Exchange, Pakistan Mercantile Exchange, Central Depositor Company, National Clearing Company, Mutual Funds Association of Pakistan and Insurance Association of Pakistan have developed a nation-wide Investor Education and Awareness Programme targeting various segments of society from university students to retired individuals and general public with an aim to create awareness of various financial products and instill a savings culture in Pakistan.