Chairman Securities and Exchange Commission of Pakistan, Zafar Hijazi visited Pakistan Stock Exchange Limited (PSX) and met members of the Board of Directors of PSX, including the representative of the Chinese consortium. The SECP chairman was accompanied by senior level officers of the SECP on the occasion.
During his discussions with the PSX Board, the Chairman SECP welcomed the incoming PSX Board and appreciated the contribution of the outgoing directors. The chairman desired that PSX Board should conform to highest governance standards, the appointment of independent directors should be expedited and that PSX management should be strong, professional and independent. He stated that PSX must focus on investor protection and risk management and for the same, the Exchange should assume the role of a full-fledged self-regulatory organisation in line with best practices while ensuring segregation of regulatory and commercial functions. He reiterated that in line with SECP’s policy of zero tolerance towards market manipulation and unfair trade practices, PSX must focus on strong enforcement, compliance and risk management. He mentioned SECP’s various recent reforms to improve risk management and hinted at strict action against anyone involved in illegal activities. In particular, he pointed out the recent constitution of a committee to review existing models of financing by brokers in light of best practices and local requirements, whose report is expected shortly, and expected that the PSX Board would facilitate implementation of recommendations of the committee.
Mr Hijazi further expressed his desire that the Chinese Consortium would play a pivotal role by ensuring a commercially driven strategy and sharing its experiences with regards to the same. A detailed, three-year business plan is anticipated from PSX which should propose concrete measures for development and activation of the equity, debt, derivatives, SME and commodities markets, along with practical initiatives for expanding market outreach and investor base.
The PSX Board appreciated the SECP’s efforts for creation of a fair, transparent and modern capital market, in particular, the recent reforms carried out in consultation with the stakeholders, and assured the SECP of its commitment towards the fulfilment of the SECP’s expectations towards PSX.
