Chairman Securities and Exchange Commission of Pakistan (SECP) Zafar Hijazi met the Board of Directors and members of the Demutualization Committee of the Karachi Stock Exchange (KSE) to consider the operational matters pertaining to the integration of the country's three bourses.
He briefed the participants about the expected launch of Pakistan Stock Exchange (PSE) on January 1 next year. He told them that the ceremony for the said event would be a landmark in the history of capital market which would be attended by Finance Minister Ishaq Dar. Prime Minister Nawaz Sharif is also expected to attend. The potential foreign strategic investors who have expressed their interest for partnership/collaboration with the PSE were also expected to show up.
It was reiterated that the country's capital market and its stakeholders had a number of expectations from PSE which would be a dynamic, well-governed and competitive stock exchange, better positioned to achieve the goals of business viability, divestment and technological innovation. The SECP team explained the proposals regarding Base Minimum Capital, the transitional treatment of the market protection funds and business continuity of the brokers of Lahore and Islamabad stock exchanges, post integration.
The participants of the meeting agreed in-principle with the proposals and appreciated the SECP's efforts in this regard. Later, an SECP commissioner also held an open house session with the KSE brokers on the proposed draft Securities Brokers Regulations 2015.
The SECP team assured the participants that the new regulatory regime for brokers would be implemented through consultative approach and in a phased manner to ensure minimum disruption to the market. The timeline for submission of feedback on the draft regulations had already been extended by the SECP till December 07, which would hold various rounds of discussions with the stakeholders to finalise implementation modalities to ensure smooth transition of brokerage houses from existing regime to the new regime.