SECP, PSX and NCCPL for robust enforcement regime

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ISLAMABAD, Jan 4 (APP): The senior management of Securities and Exchange Commission of Pakistan (SECP), Pakistan Stock Exchange (PSX) and National Clearing Company of Pakistan Limited (NCCPL) Wednesday agreed that a robust and effective enforcement regime was critical to ensuring discipline and continued development of market.
A meeting of senior management of the SECP, PSX and NCCPL was held in Karachi during which it was noted that various reform measures aimed at the development of market have been implemented particularly the successful divestment of the PSX shares, paving the way for further improvement in its governance and management, technological
innovation and product development.
Progress has also been made in respect of other measures such as the concept of E-IPO, improving the quality of listing, said a SECP press statement issued here.
The SECP expressed its firm resolve that while untiring efforts have
been made for the development of market, a zero tolerance policy will be adopted towards enforcement of laws and regulations and to ensure that market participants comply with the regulatory framework, including timely collection of margins by brokers from their clients in the leverage markets and strict action will be taken in case of any violation of law and to protect interests of the public.
The participants of meeting also reviewed the recent upwards trend in
the market and discussed the existing risk management framework and its adequacy to ensure uninterrupted market operations and it was agreed that the criteria and composition of acceptable collateral against margin requirements should be reviewed to ensure quality of collateral while close monitoring of positions in the market by the PSX and NCCPL to curtail risks.
It was also agreed that the process of reviewing the fundamental
concepts of risk management framework in line with best international practices and local dynamics should continue and reform measures should be implemented in a well-calibrated manner.