Qudsia Bano

In a significant move to bolster the financial landscape, the ministry of finance has announced the formation of a committee tasked with enhancing the operational readiness for the issuance of government debt securities (GDS) at the Pakistan Stock Exchange (PSX). The committee, composed of seasoned experts from the financial sector, is set to play a pivotal role in finalising the modalities for the issuance and trading of government securities on the PSX platform, reports WealthPK. This includes the formulation of necessary systems and processes characterised by operational efficiency, transparency, and readiness to facilitate the seamless issuance, registration, trading, and transfer of GDS through the PSX. The committee's strategic approach involves instilling investor confidence while addressing prevalent operational challenges within the financial sector. A collaborative effort with stakeholders such as the ministry of finance, State Bank of Pakistan, Security Exchange Commission of Pakistan and PSX is anticipated to result in the seamless integration of existing practices.

This integration aims to ensure market integrity and investor protection in the trading of GDS on the PSX. As part of its responsibilities, the committee is set to conduct a comprehensive review and evaluation of the operational capabilities of key entities in the financial sector, including the PSX, Central Depository Company and National Clearing Company of Pakistan Limited. This assessment will extend to the available infrastructure and trading systems concerning the issuance, registration and transfer of GDS. Talking to WealthPK, Hamza Anwar, equity manager at Zahid Latif Khan Securities (ZLKS), said that the committee will actively collaborate with stakeholders to propose and develop an efficient surveillance mechanism and risk management system.

“These initiatives are geared towards fortifying the regulatory framework, with the committee empowered to recommend necessary changes that align with the evolving dynamics of the financial markets,” said Anwar. “The establishment of this committee underscores the government's commitment to fostering a conducive environment for the trading of government securities, promoting investor confidence, and addressing operational challenges within the financial sector. As the committee begins its work, industry participants and investors alike will be keenly watching for developments that are expected to shape the future landscape of GDS trading on PSX,” according to ZLKS’s equity manager.

Credit: INP-WealthPk