Farrukh Khan says condition of biometric verification removed
It is now very easy to open new brokerage accounts at the Pakistan Stock Exchange or PSX after recent steps taken by the central bank, the managing director of PSX, Farrukh H Khan, said on Wednesday.
He was talking with media persons at the stock exchange in Karachi.
Khan said that the physical form had been simplified and accounts could also be opened online, he said.
“The condition of biometric verification has been removed. Now bank account data can be used for opening brokerage accounts,” the managing director of PSX said.
Expressing the hope that Pakistanis would soon have access to digital bank accounts locally, Farrukh H Khan said that Roshan Digital Accounts for expatriates was also getting a good response.
He said that if the facility of digital accounts was available in Pakistan, it would greatly enhance trading at the equity market, adding that the number of small investors would multiply.
Stressing the need for long-term investment, Khan said that there were ample opportunities for new investors.
“If the investment is made through mutual funds the rate of return exceeds that of profits earned via bank accounts,” he maintained.
When asked to comment on the downward trend prevailing over the stock market for the past month, he said that the market was under pressure because of a number of factors.
“Leading among them is the volatile situation in Afghanistan and the doubling of oil prices in the international market. Other factors include the high interest rate and the depression in the value of rupee against the US dollar. Meanwhile, the shift from an ‘emerging market’ to ‘frontier market’ also acted negatively on stock market sentiments,” he explained.
However, he said that all these effects were temporary.
“We are still a high-yield market. Over the past 20 years, investors had reaped 19% profit in dollar terms,” he said.
According to him, the shift to frontier market was because of lowered market capitalization, but there were advantages to trade in a frontier market.
He suggested that the government should use the stock market for financing circular debt and paying for infrastructure development.
When he was asked when would the new trading system become operational, he said that it would become operational some time this month. He said that the new system could have bcome operational a while ago but the system was being upgraded after receiving recommendations from some stakeholders.
According to him, this system was to become operation in March this year, but this could not happen because of the high incidence of coronavirus cases.
He pointed out that the chairman of the Securities and Exchange Commission of Pakistan or SECP, Amir Khan, had announced to bring the new system on line on July 12 this year, but it also could not be implemented.
“This is an advanced state-of-the-art system armed with a surveillance system, protecting the system against artificial hikes and dips. All abnormal trades can be traced. The new system will enhance transparency in the equity market,” Farrukh H Khan said.