ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has embarked upon a new plan to mitigate the role of broker by providing controlling authority to the investors to directly manipulate shares in the stock exchanges of the country.
"We will be launching two products with Depository Company of Pakistan Limited (CDC) and National Clearing Company of Pakistan (NCCP) to keep the shares and finances with them instead of with the broker", Zafar Abdullah Commissioner, Securities Market Division; Support Services Division said.
Talking to journalists at a daylong workshop here Wednesday, he said "broker's role would be reduced in the system so he cannot manipulate the shares," he said hence paying way for checking his power of manipulating shares.
Currently, the investors/share holders have to access the trading practice through their brokers and brokers are keeping record of their transactions, so they are in position to manipulate the shares and could involve in misappropriation, he added.
There are about 200 brokers in Karachi Stock Exchange (KSE), 150 in Lahore Stock Exchange (LSE) and 120 at Islamabad Stock Exchange (ISE), he added.
Under the system the finance and shares would be stored at CDC and NCCP and clients would provided access the system online, so they can involve in trading practice without physically going to stock exchange. However, the clients would remain registered with some broker, he added.
Earlier, in his detailed presentation, Deputy Director Securities Market Divisions, Tariq Naseem briefed the media persons about the working system of capital markets.
To a question about the foolproofness of the overall data system of SECP, he said not a single report of data hacking was recorded.
He said that commission's Depository system has been in practice since 1997 and no single incident of this nature has happened so far.
He said that the commission was in process to improve various laws and procedures to help improve the overall system of capital markets.
He said that although the commission has improved several procedures but there are laws which needed to be updated.
On the occasion, SECP official Jamil Amir gave detailed presentation on the online registration of companies with the SECP.
He said that out of the total companies registered with the commission, 40,000 were active where as others were dormant. He said that the dormant companies are being issued notices
He said that the commission has fixed low charges on online companies registration to encourage interested companies to utilize this facility.
Among others, journalists of various public and private sector organizations participated in the workshop while Acting Chairman SECP Tahir Mahmood was also present on the occasion.
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