Capital market reform measures improves investor participation: Annual Report.

ISLAMABAD -- Capital market reform measures have improved investor participation by allowing ease of entry into the market, said a Annual Report issued here by Security and Exchange Commission of Pakistan.

In this regard, not only domestic but foreign investors and NRPs have also shown more interest in investing in our capital market.

According to the annual report,owing to facility of online account opening process for NRPs, approximately Rs2.589 billion funds have been received for investment in securities as of June 30, 2021.

Further, the online account opening facility introduced in January 2021 has resulted in opening of more than 10,500 accounts through this facility, which forms approximately 38% of total new UINs registered during the period, report added.

Measures undertaken in response to the COVID-19 pandemic also resulted in seamless market operations without any disruption. Securities brokers retained uninterrupted access to the market while investors continued to open their accounts from across the country.

Report said that for implementation of new brokerage regime, introduction of Professional Clearing Member model is imperative. Subsequent to provision of regulatory coverage, license has been issued to a company to function as PCM which has set the stage for finalizing and introducing brokers categorization, thus paving the way for enhanced investor protection.

Further, corporate governance of PSX has been enhanced which shall improve operational efficiency and functioning of PSX in the capital market. Other corporate governance measures have resulted in removing over-regulation and rationalizing educational qualification and experience requirements for senior management officials of SROs. In addition, reform measures foster investor confidence in our capital market resulting in increased investor participation. Also, investors are facilitated to easily attend AGMs when AGMs are scheduled through PSX AGM Calendar and by encouraging companies to provide electronic modes for shareholders to attend AGMs, report added.

To perform ongoing risk analysis, SECP has a dedicated Systemic Risk Wing to monitor cross segment systemic risk indicators...