Demutualisation and Integration) Act 2012 was signed into law to facilitate the process. The Act also calls for the sale of up to 40 percent of the stock exchanges to a strategic investor, which can be a foreign stock exchange or depository company.
The Turkish and Qatari stock exchanges have shown interest in buying 40 percent stakes.
However, after the integration their stance will be cleared whether or not they are still interested.
The finance minister also appreciated the SECP’s efforts for getting Pakistan’s Index reclassified in the upcoming Annual Market Classification Review of MSCI.
He asked the SECP for reclassification of Pakistan’s capital market as MSCI emerging market. He also acknowledged the SECP for achieving 62 percent compliance with the standards of the International Organization of Securities Commission assessments.
SECP Chairman Zafar Hijazi said the formation of Pakistan Stock Exchange is a major milestone in the history of Pakistan’s capital market that will lead to achieve the government’s vision of a fair, efficient and transparent market.
Pakistan’s capital market has enough potential to become a regional capital hub and the SECP aims at building the country as one of the best capital market in the Asian region, Hijazi said.
He said the PSE would be in a better position to invite reputed stock exchanges from across the world to become its strategic partner, but the national interest will be kept supreme, while making decisions in this regard.
He said there is an option to sell majority of the shares of Pakistan Stock Exchange to local financial institutional investors and the investment from international stock exchange will be kept limited to the provision of required technological support.
He said the SECP is working hard to get Pakistan’s index included in the MSCI emerging market by April next year.
He also sought support from the finance minister and the SBP governor in achieving his ambitious targets.
He also announced that all the brokers registered in the ISE and LSE will now be entitled to trade at the PSE platform.