March 26, 2019 (MLN): The past few days’ trend observed at domestic capital markets has extended a shadow of concern over investors, as traders continue to lead sell-offs amid lack of positive triggers.
Consequently, the benchmark KSE – 100 Index has suffered a net loss of around 1,500 points in the last 20 days alone.
To discuss this matter in detail, the PSX Stockbrokers Association (PSA) invited SECP Chairman Mr. Farrukh Sabzwari to Stock Exchange for a meeting which was also attended by the market participants/TREC Holders.
At this meeting, Secretary General, Mr. Adil Ghaffar highlighted the issues associated with volumes and stated that current turnover in stock market will eventually lead many stock brokers/TREC Holders out of business.
He stressed that the present regulations are cumbersome and Regulatory environment should be relaxed to allow TREC Holders to concentrate on marketing rather than complying with over-regulations.
Thereafter, Mr. Sabzwari said that many of the proposals submitted by PSA have been approved and numerous are under process.
Various issues being faced by the members were also discussed which are contributing in the continuous decline of the market and members expressed their confidence, that SECP would be able to resolve these issues, as the Chairman has an extensive exposure to the Stock Market.
They also emphasized that the improvement of the market is also in the interest of Government. There can be no economically successful Pakistan without a vibrant Stock Market. Being fully documented and tax compliant industry of Pakistan, it should be incentivize.
Chairman SECP further assured the house that reasonable measures will be observed to promote investment in Stock market to encourage the investors. Ease of doing business will be promoted and all concerns and issues will be resolved in due course, he promised.
Adding on, cost of doing business, which is affecting the market, will also be considered to reduce as the issues have already been addressed before the house and in multiple meetings held with the representatives of PSA.
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