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PM adviser vows measures for PSX recovery

Business

May 18, 2019

KARACHI: Adviser to the Prime Minister on Finance, Revenue and Economic Affairs Abdul Hafeez Shaikh on Friday assured a delegation of the brokers of the measures to help the stock market recover its losses.

Shaikh was talking to a delegation of leading businessmen and brokers comprising of Bashir Jan Mohammad, Arif Habib, Aqeel Karim Dhedhi, Ali Jamil and Pakistan Stock Exchange (PSX) Chairman Sulaiman Mehdi to discuss the overall macroeconomic situation of the country and its impact on the capital markets. The Federal Board of Revenue Chairman Shabbar Zaidi and Adviser to Ministry of Finance Khaqan Najeeb were also present at the meeting. The PM adviser took note of all the suggestions positively and assured the delegation of the government’s full support and cooperation. Various measures relating to market reforms were discussed during the meeting.

The delegation advised various measures to strengthen the capital market considering the present depressed market sentiment. The benchmark 100-share Index of the PSX has lost half of its market value in the last two years.

The delegation urged the PM adviser to approve the proposed draft of Listed Companies (Buy Back of Shares) Regulations 2019. It also demanded increase in the limit of 10 percent on treasury shares. The delegation proposed the government to resolve the present issue of ready futures transaction at the stocks market, which is hurting the market volumes.

The delegation also demanded a market support fund keeping in view the attractive valuations.

Meanwhile, the Securities and Commission of Pakistan (SECP) relaxed the existing sale modification fee in deliverable futures contract market (DFCM) with immediate effect for a period of three months. The high fee is affecting the market volumes.

The PSX said it is also revisiting the existing requirements under DFCM regulations of PSX rulebook “taking into account the technological constraints and operational issues raised by the market participants and international practices in this regard”.

“Based on the findings, PSX shall undertake additional reform measures through appropriate regulatory amendments in order to resolve the issues of the market participants in DFCM,” the PSX said in a statement.

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