Daily Times

Karachi: After divestment of 40 percent stakes to Chinese Consortium, the first meeting of Board of Directors of Pakistan Stock Exchange including four Chinese representatives was held on Friday.

The Chinese directors including a woman who attended the first board meeting included Mr. Que Bo (Director representing Shanghai Stock Exchange), Mr. Zheng Hu ( Director representing China Financial Futures Exchange), Ms.Yu Huali (Director representing Shenzhen Stock Exchange) and, Li Peng (Director representing Pak China Investment Company limited). PSX has 15 members including chairman, Muneer Kamal, on its Board of Directors.

Chairman Securities and Exchange Commission of Pakistan SECP, Zafar Hijazi, chaired the first meeting of the Boar of Directors who welcomed the incoming PSX Board and appreciated contribution of the outgoing directors.

SECP Chairman said that PSX Board should conform to highest governance standards, appointment of independent directors should be expedited and that PSX management should be strong, professional and independent. PSX must focus on investor protection and risk management and for the same, the Exchange should assume the role of a full-fledged self-regulatory organization in line with best practices, while ensuring segregation of regulatory and commercial functions, he added.

Hijazi directed the PSX to focus on strong enforcement, compliance and risk management in line with SECP’s policy of zero tolerance towards market manipulation and unfair trade practices.

He mentioned SECP’s various recent reforms to improve risk management and hinted at strict action against anyone involved in illegal activities. In particular, he pointed out the recent constitution of a committee to review existing models of financing by brokers in light of best practices and local requirements whose report is expected shortly, and expected that the PSX Board would facilitate implementation of recommendations of the committee.

Hijazi hoped that the Chinese Consortium would play a pivotal role by ensuring a commercially driven strategy and sharing its experiences. A detailed three-year business plan is anticipated from PSX which should propose concrete measures for development and activation of the equity, debt, derivatives, SME and commodities markets, along-with practical initiatives for expanding market outreach and investor base.