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SECP for expediting divestment of shares of KSE

August 6, 2014

The Securities and Exchange Commission of Pakistan (SECP) has instructed the Demutualization Committee to expedite the process of divestment of shares of the Karachi Stock Exchange (KSE).

The meeting of the Demutualization Committee was held in Karachi on Tuesday to review the progress made on the task of divestment of shares of the KSE to the strategic investor, said a press release issued here.

The meeting was chaired by Tahir Mahmood, Chairman, Securities and Exchange Commission of Pakistan (SECP).

It was attended by Zafar Abdullah, Commissioner Securities Market Division,Imran Iqbal Panjwani, Executive Director, SECP, Imran Inayat Butt, Director SECP/HOD, Arif Habib and the members of Demutualization Committee, including Amin Issa Tai, Ferozuddin A. Qasim, Abdul Majeed Adam, Yasin Lakhani, Haji Ghani Haji Usman and Shehzad Chamdia.

As per the law governing demutualization, a maximum of 40% shares of KSE are to be sold to strategic investor whereas at least 20% of shares should be sold to the general public.

The remaining shares of the KSE will be sold to the local financial institutions. It was noted with satisfaction that the Demutualization Committee, with the assistance of consultant, has made significant progress and is expected to reach the stage of attracting bids from potential investors shortly.

The SECP appreciated the efforts of Demutualization Committee in this regard. It was agreed that the divestment process will be expedited and the SECP assured the Demutualization Committee of its continued support to achieve the divestment in a transparent and efficient manner.

The performance of recently launched Government Debt Securities Market (GDS Market) was also discussed and SECP emphasized the need for stepping up efforts to improve the turnovers of GDS Market by increasing its outreach to the retail investors.

The broad measures for developing the GDS segment were identified, including the need for effective market making, efficient information sharing with SBP and improving the trading system and operational modalities.

It was noted that the SECP has already approved the required changes in the regulations to facilitate market making by the primary dealers and it was agreed that coordination will be made with SBP for ancillary support in this regard.

The SECP also announced that a forum comprising of veteran capital market participants and SECP officials will be formed to discuss and evaluate the proposals for market development. The need for reviving and developing the derivative products was also discussed and it was agreed to work jointly to remove any practical hurdles.

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Source: Balochistan Times (Pakistan)

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