ISLAMABAD: The Consultative Group, constituted by the Securities and Exchange Commission of Pakistan (SECP) has agreed on the need for introducing important structural reforms for market infrastructure institutions. The reforms including attainment of central counter-party status by the clearing house and establishment of a settlement guarantee fund to ensure a robust and efficient risk and default management regime in accordance with the best international practices.
The Consultative Group, which was formed to recommend the way forward for the development of capital markets in Pakistan, held its first meeting in Karachi. It deliberated on various matters pertaining to development of the capital market. During the discussions, various proposals and suggestions were also put forward by the group members regarding market development and restoration of investor confidence. There was a consensus among the group members for the need to step up efforts on market development initiatives for promotion of various market segments.
During the meeting, it was emphasized that SECP, as the apex regulator, and the stock exchanges, as frontline regulators, shared the same vision of making Pakistan’s capital market a vibrant, transparent and effective regional market. It was further highlighted that the SECP had embarked on a comprehensive reforms agenda for the capital market, which would require extensive efforts and support from other stakeholders for effective implementation.
