Keeping in view the devastating impact that COVID-19 has brought to the stock brokerage fraternity and capital market investors, PSX Stockbrokers Association (PSA) has requested the federal government to take immediate and timely action in order to save both the stock brokerage industry and the investors of capital market.
In a letter to DR. Abdul Hafeez Shaikh, Advisor to the Prime Minister on Finance and Revenue, the PSA said that the stock market took severe blow as a result of natural calamity and no one in the country suffered monetary losses except stock brokers and investors who were required to fetch huge losses in absolute terms.
Despite the fact that magnitude of the losses was intense and social distancing had to be kept, investors/clients, where possible, co-operated with stock brokers, PSA letter said. However, stock brokers, being the TREC Holders, and solely responsible for any and all transactions were on toes to arrange for all the losses, it added.
It is indeed a cause of concern that when entire world was and is trying hard to make necessary arrangements for the business continuity and even our own Central Bank took steps and announced different measures for Pakistani entrepreneurs, our Apex Regulator was preparing to bring in structural changes in form of new broker regime.
"Our representatives met with the Chairman Standing Committee on Finance on January 30, 2020 and requested him to take notice of development being articulated by the Apex Regulator under the umbrella of new broker regime", the letter said adding that the Chairman Standing Committee was kind enough to invite us in the meeting of Standing Committee on Finance scheduled on February 06, 2020 wherein our representatives were vocal on changes being proposed. The entire house was of the opinion that any set of regulations should only be brought after consultation and agreement of regulated entities. Hence, SECP was given time to incorporate changes suggested by the Association. During discussions, it was also the desire of the honourable members to make public, the investigations conducted since 2015. Nothing in response of this has been materialized as yet.
Therefore, keeping in view the devastating impact that COVID-19 has brought to the stock brokerage fraternity and capital market investors, we request you to take immediate and timely action in order to save both the stock brokerage industry and the investors of capital market, the letter said.
"Accordingly, we are pleased to submit our proposals for your kind perusal and consideration in order to incentivise the investors at the Stock Market," the letter said.
The association expressed hope that the Pakistan Stock Market will also be given due consideration and its proposals will get favour of approval.