ISLAMABAD: Minister for Finance Senator Mohammad Ishaq Dar Saturday directed the Securities and Exchange Commission of Pakistan (SECP) for early release of 2008 stock market crisis report.
The minister also directed that in order to ensure transparency, the report should be presented in the Policy Board for appraisal and then it should be released for information of the general public.
SECP Chairman Zafar Hijazi briefed the Finance Minister on the progress regarding the demutualization of the stock exchanges.
He said the report regarding 2008 stock market crisis had been completed.
The minister was informed about the background of the demutualization of the exchanges and requirements stipulated in the Stock Exchanges (Corporatization, Demutualization and Integration) Act, 2012 in relation to divestment of 60 percent shares of the stock exchanges lying in the blocked account to the Strategic Investor(s) (SIs), general public and local financial institutions.
As required under the Act, the SECP had issued directions to the stock exchanges for completion of the divestment process by August 25.
The stock exchanges had been in contact with various international exchanges for divestment of stake to SI and/or technical collaboration. However, nothing concrete had materialized until now and no firm commitments had been received from any counterpart in this regard, the SECP Chairman said.
The minister was further briefed on the international trend on integration of stock exchanges and how it helps reduce fragmentation. It was communicated that through integration, markets benefit from operational synergies, cost cutting, economies of scale and streamlined regulation.
The minister asked the SECP to have the demutualization process completed without any further delay in consultation with the stakeholders.
The Stock Exchanges (Corporatization, Demutualization and Integration) Act, it may be mentioned, empowers the SECP to conclude the divestment process if the exchanges are unable to abide by the timeline. (APP)