LAHORE: Sharing their experiences of demutualisation, officials of Indian stock exchanges have underscored the need for eliminating all constraints to make the demutualisation process successful.
They were speaking at a luncheon hosted by the Lahore Stock Exchange (LSE) here on Wednesday.
The Indian delegation comprised MCX-Stock Exchange CEO and South Asian Federation of Exchanges Chairman Joseph Massey, Delhi Stock Exchange Chairman Dr Dalbir Singh and other directors of the exchange.
The Indian delegation was in Pakistan to participate in a two-day conference on opportunities to increase trade and finance between the two countries.
Joseph Massey said although Pakistan’s capital market was underdeveloped, this could be a blessing in disguise as it offered strategic investors a huge upside potential.
“The exchange must try to fully project its potential in its business plan, without which it will be very difficult to attract strategic investors, let alone sales at favourable valuation,” Massey suggested.
Commenting on restrictions proposed on issuance of trading rights after demutualisation, he said curbs of any sort that could hamper business would not be viewed favourably by any investor.
Massey also pointed out that if Indian investors were allowed to take a strategic stake in Pakistan’s exchanges, many Indian financial institutions might be interested.
Speaking on the occasion, LSE Managing Director and Chief Executive Officer Aftab Ahmed Chaudhry said: “Timing of this visit cannot be any better as the exchanges in Pakistan are in the process of demutualisation.”
He hoped that the visit of Indian business community would play an important role in increasing trade and cross-border activity in the backdrop of granting India the most-favoured nation (MFN) status and positive measures taken by both sides recently.
Published in The Express Tribune, May 10th, 2012.
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I m sure One day people will give the example of India and Pakistan friendship same as we give of European union ....God bless both....
Onwards and Upwards!!!!!!
All signs are "Good Signs" when you are nearing peaceful destination after a long journey! Keep the wheels rolling toward it, no-mater what the speed is.