A committee, formed to find ways to break the capital market bottlenecks, has submitted its recommendations with Securities and Exchange Commission of Pakistan (SECP), which will assess them for further action, a statement said on Thursday.

Capital Markets Committee was constituted earlier this month by the SECP. It comprised representatives of the stockbrokers, mutual fund association, professionals with banking experience and CEOs of Pakistan Stock Exchange (PSX), National Clearing Company Private Limited (NCCPL) and Central Depository Company (CDC) being the frontline regulators.

In a meeting headed by the Chairman SECP and Commissioner Securities Market, the committee and its subcommittee chairs presented its recommendations in areas of risk management, leverage market products, ease of doing business/cost of doing business and broker business model. The proposals presented were after prepared after extensive consultation with other market professionals and small brokers from Lahore and Islamabad, the statement said.

The SECP in the statement said it would assess all the recommendations holistically in the best interest of the capital market and its stakeholders.

Upon suggestion of the committee, a team has already been formed to recommend measures for activating trading of government debt securities on the stock exchange, rationalisation of associated costs and suggest measures for addressing any practical difficulties.

The committee’s additional responsibilities include identifying the issues being encountered in the deliverable future contracts, analyse effect of recent reforms and provide recommendations to address any genuine concerns or practical difficulties identified. Moreover, it would also point out regulatory requirements, which may be hampering the growth of market or creating unnecessary burdens and provide suggestions for reform measures along with any other suggestions deemed appropriate.

The SECP said it was committed to introducing reforms focused on ease of doing business, reducing cost of doing business, regulatory facilitation and market development to help build investor confidence.

Source: PSX, SECP, The News

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