Committee Formed to Finalize Modalities on Trading of Govt Securities on PSX

The Finance Ministry has constituted a committee on Operational Readiness for Government Debt Securities on Pakistan Stock Exchange (PSX) in order to finalize the modalities on issuance and trading of Government Securities on Pakistan Stock Exchange.

The committee will have the mandate to develop the overall infrastructure including required systems and processes having sufficient operational efficiency, transparency and readiness, for issuance, registration, trading and transfer of Government Debt Securities (GDS) through PSX, in a manner that instills investor confidence and addresses prevailing operational challenges, stated a notification issued by the ministry of finance.

The committee will comprise Akif Saeed, Chairman SECP (chairperson of the committee), Mohsin Mushtaq Chandana, DG Debt, Muhammad Ali Malik, Executive Director SBP, Abdul Rehman Warraich, Commissioner SECP, Farrukh Khan, CEO Pakistan Stock Exchange, Badiuddin Akber, CEO Central Depository Company, Muhammad Luqman, CEO National Clearing Company of Pakistan, Risha Moyudin, Treasurer Habib Bank Limited, Muhammad Ismail Usuf, Treasurer National Bank, Ahmed Ali Siddiqui, Group Head Shariah Compliance Dept. Meezan Bank, Asif Qureshi, CEO Optimus Capital Management Limited, and Yasir Qadri CEO, UBL Fund Managers Limited.

Under the terms of reference of the committee, the committee will evaluate the operational capabilities of PSX, NCCPL and CDC for issuance, registration, trading, settlement, and custody of GDS. It would review technological infrastructure, trading systems, market surveillance mechanisms and required regulatory changes. The committee would develop and propose recommendations for enhancing operational readiness, efficiency and risk management.

The committee would provide guidance on seamlessly integrating existing best practices in the GDS market on PSX. It would foster collaboration among relevant stakeholders, including the Ministry of Finance, SBP, SECP, PSX and market participants.

The committee would ensure the introduction of effective mechanisms for monitoring and compliance with regulatory requirements and recommend enhancements for investor safeguarding, to ensure market integrity and investor protection in GDS trading activities on PSX.

The committee would report to the Ministry of Finance and other relevant authorities on progress, findings, and recommendations within 15 days of the constitution of the committee.

The committee may amend the TORs as required. According to the notification, post commencement of trading of GDS through PSX, the committee will convene quarterly meetings, or as necessary, to address any GDS-related matters with confidentiality.