KARACHI: Chairman, Securities and Exchange Commission of Pakistan (SECP), Akif Saeed stressed upon the importance of capital formation through quality listings at the Pakistan Stock Exchange (PSX).
He was speaking at a gong ceremony held at PSX to formally launch and celebrate the listing of JS Global Banking Sector Exchange Traded Fund (JSGBETF) on Thursday.
The commencement of trading of units of JSGBETF took place on September 11, 2023. This is the first ETF to be launched by a brokerage house in Pakistan under the SECP’s Sandbox Guidelines, 2019, and the eighth ETF to be listed on Pakistan Stock Exchange.
JS Global Banking Sector ETF is a sector specific ETF which will track a total-return, equally weighted index, JS Global Banking Sector Index (JSGBKTI). JSGBKTI will be replicating stock selection criteria of PSX’s Banking Tradable Index (BKTI). JSGBETF is a sector specific ETF that tracks a basket of stocks within the banking sector. It currently consists of eight (8) banking stocks that represent approximately 70 percent of the listed banking sector or approximately 80 percent on free float market cap.
The Chairman SECP said that liquidity in the market needed to be improved and more public involvement could be ensured through increase in free float of companies.
The Chairman informed the participants about SECP’s Regulatory Sandbox programme which is now open throughout the year for submission of innovative ideas. He expressed confidence that launch of Centralized Gateway Portal in the upcoming week will broaden investor base by providing access to mutual funds, stocks and insurance products through a single platform.
MD and CEO of PSX, Farrukh Khan while welcoming the guests congratulated the SECP for promoting new initiatives under Sandbox Regulations. “We are very excited and pleased to list the first ETF at PSX which is launched by a brokerage house in Pakistan,” he said, adding that ETF which focused on sector specific basket of banking stocks increased the range of options available for investors to choose from when investing in ETFs at PSX. He said it provided an easy and low cost instrument for investors to gain exposure to the banking sector in Pakistan.
He congratulated JS Global on this new and innovative addition to its portfolio of offerings and products. This was a much needed addition to the variety and number of ETFs available on the local market. Globally, there wee more than 8700 ETFs listed worldwide with Assets Under Management of almost $10 trillion, he said.
CEO of JS Bank Limited, Basir Shamsie, said that was a great milestone for JS Global, and JS Group as a whole. He congratulated JS Global for their perseverance and commitment without which this feat would not have been possible.
CEO of JS Global Capital Limited, Imtiaz Gadar said, “We have marked a great day for JS Global and I thank all market participants, regulators and JS Group for all their support. The JSGBETF is the first ETF launched by a brokerage house in Pakistan and is the first sector specific ETF in Pakistan with a basket of eight stocks from the banking sector. This will be based on a total return index with equal weight constituents.”
CEO, Central Depository Company of Pakistan Limited (CDC), Badiuddin Akbar, CEO, National Clearing Company of Pakistan Limited (NCCL), Muhammad Luqman, senior management of the SECP, JS Bank, and JS Global, Board members PSX, and senior management of PSX attended the event.
Copyright Business Recorder, 2023
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