Securities and Exchange Commission of Pakistan talks about boosting capital market with important stakeholders

The recent meeting between the top management of the Securities and Exchange Commission of Pakistan (SECP) led by Chairperson Akif Saeed and key stakeholders in the capital market showcased a unified effort towards the development of a strategic plan for the next three years. In discussions with the chairpersons and senior representatives of the Pakistan Stock Exchange (PSX), National Clearing Company of Pakistan Limited (NCCPL), and Pakistan Mercantile Exchange (PMEX), the focus was on enhancing the capital market’s growth and efficiency.

At the meeting with the PSX, the exchange’s senior management outlined a strategic plan centered around effective governance, operational excellence, and market development. Emphasizing the importance of introducing new products, expanding the stock market investor base, and attracting new Initial Public Offerings (IPOs), the SECP chairperson highlighted key areas for future growth and sustainability.

In a subsequent meeting with the NCCPL, the transition to the T+1 settlement cycle by May 2025 was a key agenda item. Additionally, discussions revolved around engaging financial institutions for increased participation in the capital market, implementing reforms in the margining regime, and conducting awareness sessions to expand market outreach.

The SECP’s separate meeting with the PMEX aimed to strategize the development of the commodities market, focusing on enhancing risk management practices, internal governance frameworks, and strengthening warehousing infrastructure. Furthermore, discussions highlighted the importance of developing agricultural commodities futures and spot markets to diversify investment opportunities.

The SECP, accompanied by officials from the Specialised Companies Division, also engaged with the Mutual Funds Association of Pakistan (Mufap) to explore the mutual funds industry’s role in the capital market. Regulatory reforms in the Non-Banking Finance Companies Regulations, 2008 were discussed, underscoring the need for alignment with evolving market dynamics.

Overall, these collaborative efforts between the SECP and capital market infrastructure institutions are expected to drive sustainable growth and development in Pakistan’s capital market. By aligning strategic objectives, addressing regulatory reforms, and fostering greater market participation, the stakeholders aim to realize the full potential of the capital market and contribute to the country’s economic progress.