To generate the funds for infrastructure projects, the government has decided to launch the T-Bills and Pakistan Infrastructure Bonds in February 2014. In order to ensure the transparency, the T bills and Infrastructure bonds will be launched through the stock markets.
It a meeting held in ministry of finance, it has been decided that now onward all the government’s money market instruments will be traded through stock exchanges. The federal finance minister Senator Ishaq Dar has instructed the Securities and Exchange Commission of Pakistan to complete all the legal and corporate formalities in this regard.
The meeting was attended by Secretary Finance Dr Waqar Masood, Secretary Privitization, Chairman Karachi Stock Exchange Munir Kamal and acting Chairman SECP Tahir Mehmood.
According to the sources, the meeting also discussed the possible sell-off of government’s sharing in some of commercial banks through stock exchanges.
Acting Chairman SECP Tahir Mehmood briefed the committee on the measures that has been taken by the regulator to accelerate growth in the debt market. He said that for the trading of government debt instruments at the stock exchanges, a special purpose committee has been formed having representation from SBP, SECP, KSE, CDC and NCCPL for the purpose.
The committee will finalize the model for trading of government securities at stock exchanges and their settlement and it is expected that this landmark will be achieved very shortly. The finance minister was informed that efforts are also being made for integration of National Savings Scheme instruments into the mainstream capital market to enable wider retail participation and increasing the savings ratio in the country.
The SECP has already initiated the process of amendments in the in the Brokers and Agents Registration Rules, 2001 for revamping of brokers’ registration regime to introduce critical reforms such as a stringent fit and proper criteria, concept of separation of trading and clearing functions by introducing different classes of brokers such as trading brokers and clearing participants.
Moreover, he informed meeting that the SECP is actively pursuing with Pakistan Mercantile Exchange (PMEX) and the Karachi Cotton Association in its endeavor to launch cash-settled cotton futures contract at PMEX. Further, work is underway for establishment of a Collateral Management Company (CMC) that would have a national network of approved warehouses with storage, grading/certification capabilities for the commodities market. The CMC will issue electronic warehouse receipts and the same will be made available for trading on PMEX.
Presently, the e-IPO facility is being provided only by the UBL which doesn’t cater for all investors. In order to further expand this facility, the meeting agreed to develop a centralized system by CDC that will enable all the investors to make application electronically through this system for subscription of shares offered to the public.
Federal Minister said that trading of government securities at the stock exchanges of Pakistan will encourage participation of small and private investors, and the increase in depth of the secondary debt market.
Finance minister said that a vibrant Debt Capital Market will not only diversify investment avenues for investors but will also help in improving saving ratios and enable government to raise financing for crucial infrastructure projects.
According to the sources, the finance minister also discussed about the restructuring of the SECP and to make it free from the undue influence of market participants. The finance minister asked the acting chairman to take solid steps to create conducive business climate for incentivizing the corporatization.
No comments:
Post a Comment