Demutualization will lead to better supervision of market players, greater investor protection and more effective decision making as the stock exchanges, being the frontline regulator, will now be able to decide independently without influence from market participants.
In order to achieve long term and sustainable growth, the SCEP has identified five pillars of capital market that need to be addressed. These are: a) investor education and awareness; b) infrastructure development and wider distribution networks by capitalising on automation and encouraging a sub-broker regime; c) providing a bouquet of capital market products and services matching the needs and risk appetites of various strata of investors; d) better enforcement by establishing standards of governance across the capital market and ensuring that the market participants follow the best practices and e) working on human resource capacity building and establishing standards of ethical conduct for the market participants through certifications.
The SECP continues to seek the Government's support for early promulgation of three key draft bills, ie, the Securities Bill, the SECP Bill and the Futures Trading Act. These laws have been drafted after extensive consultation with the relevant stakeholders and are essential for staying abreast of developments in the international markets, ensuring better supervision of our capital market and alignment with internationally acclaimed principles of market regulation.