The Securities and Exchange Commission of Pakistan (SECP) and the Securities and Exchange Organisation (SEO) - Iran would jointly constitute a task force to identify companies and corporate entities in both the jurisdictions for listing them across the border.
Sources told Business Recorder here on Tuesday that the personal efforts and vision of Chairman SECP Muhammad Ali for global co-operation among regulators has resulted in enhanced interaction between the SECP and SEO- Iran. In order to enhance co-operation and assist each other in the areas of interest, SECP and SEO Iran had constituted a Liaison Committee that is entrusted with the task of exploring areas of assistance and interest to each other.
Sources said that the Committee took the following decisions: First, the SECP shall pursue with Karachi Stock Exchange (KSE) to enhance co-operation in Cross Border Listing. Secondly, the SECP and SEO-Iran shall constitute a task force to make proposals and identify the companies in both the jurisdictions that can be listed across the border. Thirdly, in the meantime, SECP shall approach the management of Pak Iran Investment Company Limited (PIICL) and get their view point on listing of PIICL in Pakistan and Iran. Fourthly, proposal for establishing a joint IT company for providing IT solutions to the capital markets of both the countries be further discussed between the SECP and SEO-Iran. Fifthly, the SECP and SEO-Iran would also constitute a task force for working on the Inter-Linkage of the Pakistani and Iranian capital markets. Sixthly, the SECP shall arrange visit of the members of the Shariah Board of Iran to Pakistan for knowledge sharing and meetings with the relevant capital market institutions. The purpose is to develop in both the countries a breed of professionals having knowledge of the Islamic capital market and finance.
Recently, Credit Rating Agency (PACRA) and the SEO, Iran has entered into Memorandum of Understanding (MoU) wherein PACRA to provide technical assistance in establishing a credit rating regime in Iran. Under the MoU, PACRA shall prepare regulatory framework for the credit rating business in Iran and in establishing rating agencies in Iran.
During a meeting in October 2011, SECP arranged a meeting of both the domestic CRAs with an Iranian delegation visiting Pakistan and the Iranian delegation desired to seek assistance of SECP for the development of regulatory framework for putting in place the credit rating business in Iran. To take this process further SEO - Iran then interacted through SECP with CRAs from Pakistan. Subsequently, SEO-Iran solicited technical and financial proposals from interested consultants and then shortlisted PACRA for framing of the said regulatory framework.
PACRA visited Iran and held meetings with SEO Iran and other market participants and agreed to undertake assignment. On invitation of the SEO- Iran, Imtiaz Haider, Commissioner- SECP participated in the said signing ceremony and also addressed a seminar held in Tehran on the topic of "Role and Importance of Credit Agencies in economy."