The unification of these three entities Of Pakistan that is (Lahore Stock Exchange, Islamabad Stock Exchange & Karachi Stock Exchange) is made possible through the combined efforts of myriad stakeholders. The vision of the Government of Pakistan and the Finance Minister was adopted by the Securities and Exchange Commission of Pakistan (SECP).
SECP being the Apex regulator of the country, under the able leadership of its Chairman, has heralded this vision to stakeholders of the country's capital markets and the owners of the three stock exchanges have come together for the national interest. The Central Depository Company of Pakistan and the National Clearing Company of Pakistan have also played an important role in this process. The commercial, regulatory and IT teams of the stock exchanges have been working non-stop in close co-ordination with the SECP to ensure a smooth transition to a single national trading platform for equity and debt securities.
The emergence of a single, national capital market will create a large liquidity pool through which scores of brokers (TRE Certificate Holders) shall be able to better serve existing and prospective investors throughout the country. The concurrent provision of the Exchange's Internet Trading Platform will enable brokerage houses to provide their clients with real-time services without the need for large IT infrastructure. In turn, this shall enable the rise of small and medium-sized brokers that are highly focused on core business functions such as client acquisition and equity sales.
Its module will be to enhance value of exchange operations and focus the Board and management of PSX to strategically focus on developing Pakistan's capital market including expanding the investor base, launching new investable products and encouraging companies to list.
It is anticipated that the sale of up to 40% equity stake in the PSX to strategic investor(s), after which, Offer-for-Sale of further 20% stake to general investors via book building process.
Key benefits for this integration are, approximately 400 stock brokers capable of serving investors nation-wide through a single, large liquidity pool, free provision of the Exchange's new Internet Trading Platformto all TREC holders who sign agreement with PSX. This will support small & medium sized brokers to focus on business generation and sales without having to keep large IT infrastructure. As a result, quality of service to investors will improve, Regulatory function as frontline regulator streamlined with close co-ordination of the Apex Regulator (SECP) in terms of compliance monitoring of market participants and listed companies , single stock exchange will have a nation-wide footprint with SECP supported Capital Market Hubs so that maximum people have access to the capital market.
In conclusion, the ultimate beneficiaries of this integration of the three stock exchanges into a single nation-wide Pakistan Stock Exchange (PSX) are: Savers and Investors looking for superior long-term returns, Entrepreneurs and Companies requiring capital for growth. We hope that this process proves to be in the benefit of Pakistan and its nation.