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Securities, Exchange Commission reforms leave positive impact on capital market

LAHORE (November 29 2002) : The capital market reforms initiated in 1993, in collaboration with the Asian Development Bank (ADB) and enforced by Securities and Exchange Commission of Pakistan (SECP)) since 2000, have left significant impacts on the financial markets and corporate sector of the country.

“The effective enforcement of reforms by SECP under the skilful and undaunted leadership of its Chairman Khalid A. Mirza, has resulted in a transparent, fair, efficient and orderly market, giving it a new modern look,” said Group Captain Naeem A. Khan(R), Chairman, Lahore Stock Exchange (LSE) in a statement issued here on Thursday. He added the reforms have increased the volume of trade manifold apart from improving the quality of trades as well as minimising systematic risks.

LSE chairman viewed that the present strength in the stock market is an indication of investors' confidence in the economic policies that have been pursued. Stock market, he maintained, always responds to the economic changes ahead of time and the development process in the country. Nevertheless, the government policies have provided a strong and viable long-term base for economic uplift.

Commenting on the new political scenario and its impact on the national economy, he said, stock market is the barometer of the national economy and financial health, adding in a better-perceived future, it responds ahead of actual developments. The five-year high of the index is a reflection of better days ahead, he remarked.

He further said that the capital market reforms programme has started giving viable results as the volume, market capitalisation and investor's confidence have genuinely improved. The role played by SECP in streamlining the issues relating to capital market and its watchdog is also commendable, Khan said. In line with the ongoing economic policies, the elected government can add more to the development of financial sector and hence the national economy, he concluded.

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