Task Force Established to Conclude Details for Government Securities Trading on PSX
In a significant stride to fortify the operational framework for Government Debt Securities (GDS) on the Pakistan Stock Exchange (PSX), the Finance Ministry has initiated a pivotal committee. Tasked with finalizing the modalities surrounding the issuance and trading of Government Securities, this committee underscores the government's commitment to elevating the efficiency, transparency, and overall readiness of the financial market. The objective is to create a seamless process that instills confidence among investors.
Committee Composition and Mandate
Chaired by Akif Saeed, Chairman of the Securities and Exchange Commission of Pakistan (SECP), the committee comprises experts from diverse financial sectors. Their primary mandate is to develop a robust infrastructure, ensuring operational efficiency and transparency throughout the lifecycle of Government Debt Securities.
Members include key figures like Mohsin Mushtaq Chandana (DG Debt), Muhammad Ali Malik (Executive Director, State Bank of Pakistan), Farrukh Khan (CEO, Pakistan Stock Exchange), and representatives from major financial institutions like Habib Bank Limited and National Bank.
Terms of Reference
The committee's comprehensive terms of reference focus on evaluating the operational capabilities of PSX, NCCPL, and CDC concerning GDS. This evaluation covers technological infrastructure, trading systems, market surveillance mechanisms, and regulatory frameworks. The committee will propose recommendations to enhance operational readiness, efficiency, and risk management.
An essential responsibility involves seamlessly integrating best practices in the GDS market on PSX, fostering collaboration among stakeholders, including the Ministry of Finance, SBP, SECP, PSX, and market participants.
Ensuring Market Integrity and Investor Protection
Addressing operational challenges, the committee will introduce effective mechanisms for monitoring and compliance with regulatory requirements. This includes recommendations for enhancing investor safeguarding, aiming to ensure market integrity and investor protection in GDS trading activities on PSX.
To maintain a continuous feedback loop, the committee commits to reporting progress, findings, and recommendations to the Ministry of Finance and other relevant authorities within 15 days of its constitution. The committee also has the flexibility to amend its terms of reference, showcasing adaptability to evolving market dynamics.
Quarterly Meetings for Ongoing Oversight
Post the commencement of GDS trading through PSX, the committee plans to convene quarterly meetings or as necessary to address any GDS-related matters. This commitment emphasizes the committee's dedication to the long-term success and sustainability of the GDS market on the Pakistan Stock Exchange.
Conclusion: A Stride Toward Financial Market Excellence
In conclusion, the formation of this committee signifies a crucial step toward fostering excellence in the Pakistani financial market. By bringing together seasoned professionals from various financial sectors, the committee aims to create an environment conducive to efficient, transparent, and secure trading of Government Debt Securities on the Pakistan Stock Exchange. The financial community eagerly anticipates the positive impact it will have on the market, contributing to the overall economic prosperity of the nation.
