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LSE Board of Directors and the members of the Demutualization Committee held meeting with the Securities and Exchange Commission of Pakistan to discuss the matters related to inauguration and operationalization of Pakistan Stock Exchange (PSX) as well as about the new regulatory framework for brokers. The meeting concluded with the appreciation from the LSE stakeholders about the leadership of the Commission to set a landmark direction for the future of the domestic capital market.
The Chairman SECP briefed the participants of the meeting about launch/inauguration of the Pakistan Stock Exchange (PSE) on January 1, 2016. He informed that the ceremony for the said event will be a landmark event in the history of capital market which will be attended by the Federal Minister for Finance, Mr. Muhammad Ishaq Dar, with expected attendance from the Prime Minister of Pakistan, Mian Muhammad Nawaz Sharif.
During the meeting, operational matters of ongoing integration were also discussed. The LSE Board and demutualization committee members expressed their satisfaction to the proposals regarding Base Minimum Capital, transitional treatment of the market protection funds, and business continuity of the brokers of Lahore Stock Exchanges, post integration. The participants of the meeting agreed in-principle with the proposals and appreciated the SECP’s efforts in this regard.
In relation to the proposed draft Securities Brokers Regulations, 2015, the SECP team assured the participants that the new regulatory regime for brokers will be implemented through consultative approach and in a phased manner to ensure minimum disruption to the market. It was informed that the timeline for submission of feedback on the draft regulations had already been extended by the SECP till December 07, 2015, post which various rounds of discussions will be held with the stakeholders to finalize implementation modalities to ensure smooth transition of brokers from existing regime to the new regime.
