I am very pleased upon completion of demutualization of stock exchanges in Pakistan. The Securities & Exchange Commission of Pakistan (SECP), that has always played a vital role in the development of the capital market in Pakistan, initiated the plan of demutualization of the stock exchanges back in 2004 in consultation and co-ordination with all the stock exchanges of the country to bring the stock markets at par with international stock exchanges.

The untiring efforts of the SECP and continuous support from the three bourses finally resulted in promulgation of Stock Exchanges (Corporatisation, Demutualization and Integration) Act 2012 that enabled the exchanges to be demutualized in terms of that Act. Through demutualization, governance at the stock exchanges shall be further enhanced and will lead to independent, efficient, and transparent decision making in the interest of stakeholders, particularly the investors. The stock markets shall fetch foreign investment through strategic investors whereas general public shall also be the shareholder of the Exchanges that will help to broaden the market base. With the improved perception and availability to wider range of products and services; a demutualized exchange will attract more listings. Through demutualization, transparency in the operations of a stock exchange shall be increased that will help improve its perception and enhance confidence of domestic and international investors. I once again congratulate to the Members, Board of Directors of the Stock Exchanges, SECP and Government of Pakistan upon achieving this milestone.

Copyright Business Recorder, 2012