SECP holds workshop

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) held a workshop for journalists on Tuesday to enhance their understanding of the capital markets and the regulatory framework.

The workshop, held at the SECP head office, covered topics such as equity trading at the Pakistan Stock Exchange (PSX), trading activity surveillance, and systemic risk management.

The SECP team explained the role of the stock exchange in facilitating capital formation, financial inclusion, and investment diversification.

They also briefed the participants on the functions of the Capital Market Infrastructure Institutions (CMIIs), which include the PSX, the National Clearing Company, and the Central Depository Company of Pakistan

Limited.

The workshop also highlighted the digital online account opening process for retail investors, which was launched by the SECP last year. The process, which uses the Centralized Gateway Portal (CGP), allows investors to open accounts with multiple financial intermediaries, such as brokers, asset management companies, and insurance companies, with minimal documentation and hassle. The SECP team also explained the surveillance mechanism for the capital markets, which aims to prevent and detect market abuse, such as insider trading and market manipulation. They presented case studies to illustrate how the SECP and the PSX use various tools and techniques to monitor trading activity and enforce compliance.

The workshop also discussed the systemic risk indicators that the SECP monitors to identify and address potential market disruptions. These indicators include liquidity, settlement-to-trade ratio, broker exposure, leverage, and others. The workshop concluded with a question and answer session, where the participants engaged in a lively discussion with the SECP team.

The participants appreciated the initiative and agreed that regular communication between the regulators and the media would help improve public awareness and confidence in the capital markets.