Leading stockbroker Munir Khanani has lamented that the group of brokers, representing the entire fraternity, were only pursuing the vested interests instead of making efforts for the development of market and betterment of the brokers fraternity as a whole.
He was speaking at a meeting of stockbrokers Pakistan Stock Exchange (PSX) with the delegation of Securities and Exchange Commission of Pakistan (SECP) led by Chairman SECP Farukh Sabzwari on Thursday. Shauzaib Ali and Musarrat Jabeen accompanied Farukh Sabzwari.
Stockbrokers recommended measures for further development of market through timely introduction of new products, developmental reforms, measures for investor protection and efforts for expanding market outreach through investor education and awareness initiatives.
President of PSX Stockbrokers Association, Hammad Kehar, said PSX was running in losses as there were limited products limiting market depth. Kehar talked about measures to increase listings at the stock exchange. He said due to a small number of defaults in past and over regulations, several listed companies were opting for delisting.
Kamran Nasir highlighted fundamental flaws in the laws and discussed a business model with banks for capital formation, and underlined the need of liaison with State Bank of Pakistan (SBP) in this regard.
Shahid Habib mentioned issues facing initial public offerings (IPOs) and international funds. Farid Alam talking about the measures likely to be introduced in the upcoming mini-budget and federal budget after that suggested that government securities should be traded freely in the exchange.
Muhammad Sohail discussed minimum commission of brokers and highlighted difficulties in account opening for international clients. Najam Ali said that due to stringent KYC requirements and over regulations, both domestic and international clients were facing difficulties in opening accounts.
General Secretary PSX Stockbrokers Association Muhammad Ghaffar advocated changing the definition of securities under Section 153(k) of Companies Act. He also criticized the limit on foreigners to acquire shares of PSX and urged the meeting to proceed with the proposal of merging National Clearing Company of Pakistan (NCCPL) with PSX.
Expounding on the role of PSX as a capital generation platform, the meeting also deliberated on measures required for promoting new listings of equity issues and channelizing efforts for listing of small and medium enterprises. It was stressed that PSX is well positioned as a viable platform for meeting the infrastructural financing needs of the government and increasing retail participation in government and corporate debt segment.