More capital market reforms on the cards

SBP governor vows to work with SECP for market support

KARACHI:

State Bank of Pakistan (SBP) Governor Dr Reza Baqir has cherished the successful rollout of important projects by the central bank including the Roshan Digital Account (RDA) and RAAST instant payment system.

During his visit to the Central Depository Company on Tuesday, the SBP governor lauded commercial banks for smoothly executing the central bank’s initiatives.

“CDC has played an active role in the operationalisation of Roshan Equity, which is part of RDA,” he said.

He appreciated the CDC for acting as a facilitator, infrastructure architect and information-sharing hub for the central bank.

Baqir stressed that Pakistan’s capital market would witness many more reforms, adding that the SBP was committed to working with the Securities and Exchange Commission of Pakistan (SECP) to support the capital market.

Continuing, the central bank governor said that the shared Know Your Customer (KYC) project would enhance the outreach of the capital market.

Giving details of the initiative, he said that it would enable the resident investors to open a capital market account using their bank’s online application.

On the occasion, CDC CEO Badiuddin Akber appreciated the SBP and SECP for offering continuous support and patronage to achieve the milestone in CDC’s journey towards market transformation.

“We process thousands of transactions related to the Roshan Digital Account and RAAST for stock exchange,” he said. “CDC acts as an information-sharing hub between banks and capital market entities.”

For the shared KYC project, CDC would again act as an information-sharing bridge for the digital opening of capital market accounts through banking portals for the resident investors, he said.

The objective of the scheme is to remove the duplication of information and KYC processes.

All stakeholders expect the schemes to yield promising results besides contributing to the ease of doing business through innovative solutions, digitisation and efficient processes.

Published in The Express Tribune, March 30^th, 2022.

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