SECP stresses collaboration for market growth

KARACHI: The collaboration between regulators, exchanges, and market participants is crucial in an era where financial markets are increasingly interconnected and dynamic, said Asif Iqbal, Head of the Policy Regulations and Development Department, Securities and Exchange Commission of Pakistan (SECP).

"The SECP will continue to work closely with the Pakistan Mercantile Exchange (PMEX) and other stakeholders to create an environment that fosters innovation while ensuring adherence to the highest standards of investor protection," Iqbal said while speaking at the inaugural PMEX brokers award ceremony on Friday night.

"The SECP has always believed in the potential of our commodities market to achieve further growth and success, and for this purpose, increasing the investor base is the most critical objective."

By effectively utilizing the online account opening facility and efficient marketing, the brokers now have the potential to increase their clientele and increase the depth of the market, said Iqbal, adding that the recent launch of the Central Gateway Portal is a significant development and, if utilized efficiently, has the potential to be a game-changer.

Iqbal emphasized the need to ensure fair treatment and transparency when dealing with investors to maintain and promote investor confidence. Brokers, PMEX as the frontline regulator, and the SECP must continue to play their role in implementing and encouraging a culture of compliance and discipline.

He called for ensuring strong interconnections between the commodities exchange and the local agricultural commodities markets.

Earlier, Abdul Qadir Memon, Chairman of the PMEX Board, said that PMEX has turned into one of the most excellent commodity trading platforms due to the untiring efforts of its management and team.

Memon lauded the role of the SECP in operationalization of the Electronic Warehouse Receipt Regime, overhauling of the Securities and Futures Act, promoting digitalization, simplifying the regulatory structure for brokers, and reducing the cost of compliance.