SECP chairman: ‘Could make companies go public to share profits’

Published: December 23, 2015
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Securities and Exchange Commission of Pakistan (SECP) Chairman Zafar Hijazi. PHOTO: FILE

Securities and Exchange Commission of Pakistan (SECP) Chairman Zafar Hijazi. PHOTO: FILE

ISLAMABAD: Zafar Hijazi, the Securities and Exchange Commission of Pakistan (SECP) chairman, said that the stock market regulator has the authority to tell any profit-making company to go public and share its earnings with a higher number of investors, rather than keep the benefits limited to “just one family”.

Hijazi was speaking at an investors’ awareness programme organised by AKD Securities as well as the Karachi and Islamabad stock exchanges, ahead of the formation of the Pakistan Stock Exchange (PSE).

Hijazi said the SECP was yet to exercise the power. “Though this power has never been exercised by the SECP, we want highly successful and profitable companies to be listed as well,” said the SECP chairman. “All we need is the courage to take this step, however, we will not make any decision in haste or without proper direction,” he added.

The SECP chief added that a record number of regulations have been framed in the last two years. “Everything is being done to ensure that market manipulators and those who make money through fraudulent means do not escape.”

He said that the economic future stands with the capital market of the country.

“Since there are no more functioning DFIs in the country, the only option for financing requirements is through the banking sector but that too, has its limitations,” he added. “The only viable and progressive funding option for the industries is the PSE and it will also be an attractive option for investment,” Hijazi said.

However, he added that the regulator has to be at the forefront to ensure fair practices, transparency and eradicating manipulations.

“The current investment cycle has gaps, which erode investors’ money but we will plug all these gaps by penalising mischievous elements,” he added.

Meanwhile, AKD Securities CEO Fareed Alam said capital markets were not limited to equity and stock exchanges only, adding that there is huge potential in the debt market as well.

“We are looking into this segment too,” said Alam. “We are hoping that the regulator and the government ease restrictions on trade of government papers.

“This is essential in view of the growing investment needs for China Pakistan Economic Corridor. If Pakistan can raise $10-20 billion through T-bills or PIBs then the political leverage of Pakistan will be enhanced.”

Published in The Express Tribune, December 23rd, 2015.

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Reader Comments (4)

  • Nasir Khan
    Dec 23, 2015 - 8:43AM

    Mr Hijazi instead of beating down on Pakistani business m families who make profits in Pakistan and reinvest in Pakistan, you are better advised to first force the large 5, hugely profitable telecom companies to go public. Force the Proctor and Gambols, the Gillettes, the Pepsi Colas, CocaColas of Pakistan public first before beating down on Pakistani families. And stop being more holier than the Pope. The local families have done nothing but supported Pakistan through worst of times while the foreign firms have sent back dividends abroad- nothing wrong with that either but force them to go public first. Recommend

  • Jameel ur Rasheed
    Dec 23, 2015 - 2:55PM

    No sir you can’t force any company to go public and that is the art of capitalism! Pakistan is famous for drafting absurd laws and I won’t be shocked if you do that!Recommend

  • Dec 28, 2015 - 1:34PM

    I read this article fully about the comparison of newest and preceding technologies, it’s awesome article.Recommend

  • J Ahsan
    Dec 29, 2015 - 8:29AM

    This is what happens when Merit is ignored in selecting ‘Capabale people’Recommend

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