SECP discusses development of capital market with key stakeholders

KARACHI: The top management of the Securities and Exchange Commission of Pakistan (SECP), led by Chairperson Akif Saeed met with the chairpersons and senior representatives of the Pakistan Stock Exchange (PSX), National Clearing Company of Pakistan Limited (NCCPL) and Pakistan Mercantile Exchange (PMEX) to discuss three-year strategic plans of the respective institutions for development of the capital market.

During the meeting with the PSX, the senior management of the exchange presented its strategic plan, focused on targets relating to effective governance, operational excellence, and market development. The need to develop new products, increase stock market investor base, and attract new IPOs was particularly emphasised by the SECP chairperson.

In a subsequent meeting held with the NCCPL, the SECP chairperson stressed the need for a smooth transition to the T+1 settlement cycle by the end of May 2025. Among other initiatives, the participants discussed the possibility of engaging financial institutions for more active participation in the capital market, reforms in the margining regime and holding awareness sessions for greater market outreach.

The SECP management also met separately with the management of the PMEX to deliberate the strategic plan for the commodities market, with particular focus on the risk management regime, internal governance, warehousing infrastructure, and development of agricultural commodities futures and spot markets.

The SECP chairperson, accompanied by the commissioner and senior officials of the Specialised Companies Division, also convened a meeting with the Mutual Funds Association of Pakistan (Mufap). The meeting focused on the role of the mutual funds industry in the capital market and recent regulatory reforms in the Non-Banking Finance Companies Regulations, 2008.

The deliberations will go a long way towards aligning the agenda with respective capital market infrastructure institutions for sustainable development of the capital market in Pakistan.