SECP won’t let analysts ‘hurt’ market sentiment

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ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Wednesday observed that some capital market individuals were using the print, electronic and social media to give their views/opinions to induce the general public to trade on the stock exchange.

“These persons are neither qualified nor possess the requisite expertise/skill to furnish such opinions,” the commission said in a statement. “As these views are not supported by any research and data, it encourages rumours that affect the overall investment sentiments.”

As per the statement, “Misleading views of few individuals tantamount to inducing public, based on deceptive information, for investing in securities. Any such said activity by any person is prohibited in terms of Securities Act, 2015, the framework governing stock market trading.”

The SECP stated that it encouraged a conducive regulatory environment for sustainable growth of capital markets and it was also responsible to maintain the integrity and efficiency of the stock market.

“SECP is closely monitoring market activities on a regular basis,” the statement read. “As a result of SECP vigilance, several criminal complaints have been filed against individuals/entities who were involved in market abuses.”

Moreover, SECP has issued prohibitory orders in case of a few individuals and leading institutional investors to curb malpractices and maintain investors’ confidence.

GUIDELINES FOR FINANCIAL SERVICES

Through a separate notification, the SECP has issued guidelines to promote innovation in financial services at insurance, non-banking finance and capital markets. The Regulatory Sandbox Guidelines 2019 is primarily applicable for new products, services or business models which have not been addressed under existing laws and regulations.

Under the guidelines, the applicants can apply for inclusion in regulatory sandbox implementation in which a set of applicants enter in order to test their innovation in a specified time.

The guidelines have been issued in the wake of growing digital businesses where the operator works as an intermediary or sells knowledge-based solutions to other businesses.

“The world is moving towards a new mode of entrepreneurship, and it has been proven that many innovators do not have the resources or capacity to establish large businesses. The SECP will now facilitate such innovators,” said an SECP official. “Besides, the growth of technology is opening new avenues of businesses in all sectors.”

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