Invetsors Awareness Program Organized By Lahore Stock Exchange

Lahore Stock Exchange Limited is endeavoring to educate investors, students and general public and to create awareness among the investors regarding the capital market and in particular the working of the stock exchanges. In view of significance of the financial sector of the economy, Investor Awareness Programs are being regularly conducted by LSE at various places in the country. In continuations of its efforts, Corporate Communication Department of Lahore Stock Exchange has conducted an awareness session for investors of the region in the Auditorium of the Exchange where a large number of stock investors from different cities participated in the Investors Awareness Program. It is worth to mention that general public lacks knowledge about stock market and even current stock investors are injecting their capital into the stock market on regular basis but are not fully aware of their obligations, rights and responsibilities. Foreseeing the significance of well-educated and well-aware investors in Pakistani Capital Market, the LSE is organizing a series of awareness sessions across the country.

 Mr. Mujahid Nadeem, Head of Operations of LSE while addressing the participants explained in detail the initiatives taken by SECP, LSE, CDCPL and NCCPL for protection of the investors. Speaking on the occasion, Mr. Mujahid explained the rights and responsibilities on part of investors, brokers and listed companies as provided in the different jurisdictions like Companies Ordinance, SECP Act, CDC, NCCPL and Regulations of the Stock Exchanges.

Mr. Mujahid highlighted the efforts of LSE for the initiatives taken which are necessary for transparent, cost effective and efficient trading environment for the investing community of the economy. He elucidate that LSE has provided various services for the market participant in general and for the investors in particular which include Investors Education Program, Financial Literacy Initiatives, revamping of LSE Website, Research Portal for information of companies, services of SMS alerts for trade confirmation to clients who traded through LSE’s trading system, establishment of Corporate Communication Department to deal with market participants. He further advised the investing community to acquire proper knowledge and information prior to invest in the capital market. Those investors, who make the attempt to conduct thorough research and analysis, build independent opinion about the trend of the market rather to follow the rumor, achieve superior return on their investment in equity market. It is fact there is uncertainty about future and stock market is very sensitive place where internal and external factors impact the market significantly. In view of current political instability and thereon downward trend of market, he advised the investors to wait till the stability of market. In such prevailing scenario, the investors should be more vigilant about their investment portfolio. So, well-thought of investment decision based on knowledge and fundamentals of the securities may be real assistance to the investors.

 Speaking about the factors that may cause dispute between investor and broker, he said that such situation arises on account of unawareness about rights and responsibilities of investors. Investors should be vigilant about the trading activities carried out in their accounts.  The investors should take advantage of the measures and services provided by the Exchange, NCCPL and CDCPL.

 At the end of presentation, Mr. Mujahid Nadeem replied the questions of the participants. The investors were also asked to provide their feedback for improvement of the stock market working wherein investors would feel more secure about the capital invested in equity market. Investors were of the opinion that there should be a system put in place for monitoring of their cash deposited with brokerage houses. They also pointed out that their trading accounts and cash are misused by the brokerage houses. A stringent mechanism should be devised by the exchanges and/or related entities to prevent the misuse of cash and their accounts opened with the brokerage houses for trading proposes. The investors also complained about the listed companies that their rights are not fully given to them and pointed out non-compliance on part of listed companies. Participants of the program were of the view that sessions on technical analysis should also be arranged for guidance of investors. Further, they also pointed out that there are no ratios of the companies placed at LSE website.