The Chairman, Securities and Exchange Commission
of Pakistan (SECP), Razi-ur-Rahman Khan has said that the SECP will continue its
reforms process to improve the existing risks mitigation standards, introduce
specialized market monitoring techniques and to ensure transparency and fair-trade
practices in the market.This he said while inaugurating a seminar on “Role of Derivatives in the Growth of Emerging Capital Markets” organized by the SECP in collaboration with the London Metropolitan University, here. The seminar was widely attended by the market
participants, including representatives of brokerage houses, asset management
companies, investment banks and commercial banks.
The Chairman SECP explained the SECP’s policy of taking initiatives to learn from
the international experiences and to introduce the internationally acclaimed
products and standards in the local capital markets. He viewed that the better and
efficient products will attract more market participation.
During the seminar, a presentation was given by Mr. Clive Farrand, a senior lecturer
at London Metropolitan University with an extensive experience in investment
banking in the UK, Europe and Middle East. He introduced the various derivatives
products presently traded in international markets through exchanges as well as on
OTCs. He explained how such products brought diversification and investments
options in the international markets for various types of investors. He advised the
participant institutions to make small investments in such products in the
international markets, to develop better understanding of the benefits.
The Chairman, Karachi Stock Exchange Mr. Shaukat Tarin, in his concluding
remarks highlighted the significant growth in the Pakistani capital markets in the
last two years, where foreign direct investment has grown tremendously. He
observed that in international markets derivates have emerged as pillars of financial
system and the same are now inevitable for the emerging markets, including
Pakistan. He apprised the participants on the progress of institutional capacity
building of KSE and NCEL with special emphasis on marketing these investment
avenues across the nation to increase the investors’ base. Mr. Tarin appreciated the
recent reforms, including improvements in the governance standards, deregulation
& liberalization of investments policies and fast-track privatization