Pakistan's 1st PCM For Capital Market Launched

(@FahadShabbir)

Pakistan's 1st PCM for capital market launched

KARACHI, (UrduPoint / Pakistan Point News - 26th Nov, 2021 ) :As a landmark achievement in Pakistan's capital market, first Professional Clearing Member was formally inaugurated on Friday by Adviser to the Prime Minister on Finance and Revenue, Shaukat Tarin.

Speaking at the launching ceremony here at CDC House, the Advisor said that to facilitate businesses and ensuring maximum ease of doing business environment was the top priority of the government.

This initiative of Professional Clearing Member (PCM) was a very significant and timely initiative by Securities and Exchange Companies (SECP) and had been very well executed by Central Depository Company (CDC).

"It is very essential for our capital market to introduce such novel concepts which will bring more transparency and efficiency in it," he emphasized adding that CDC had won the trust and confidence of the investors, the regulator and all other stakeholders in the market through market development and investors' facilitation.

The new PCM regime had been successfully implemented after the introduction of the relevant regulatory framework by SECP and capital market infrastructure entities leading to the launch of EClear Services Limited (ESL) by CDC, pakistan stock exchange , National Clearing Company of Pakistan Limited and Pakistan Kuwait Investment Company, with CDC playing its lead role of the project manager.

That was a world class initiatives which depicted trust in CDC by the investors and regulators, he reaffirmed.

CDC was also playing key role in promoting Roshan Digital Accounts meant for Overseas Pakistanis.

" You are on right direction," he appreciated CDC and SECP efforts.

Shaukat Tarin shared that when CDC was set up in 1997, he was a board member. It was big a challenge to make CDC a strong vehicle for growth of the capital market in the country. By the grace of God, he continued, we succeeded in transformation of the capital market.

He said the government was working on strengthening fundamentals of the economy and would have to take hard decisions.

SECP's Chairman, Aamir Khan said that PCM regime would address two long-standing issues---risk of custody defaults by transferring custody to the PCM, and expanding the retail investor base by empowering small brokers.

Chairman CDC, Moin Fudda, through video link from abroad, briefly apprised the audience of the initiatives taken by CDC for transformation and growth of the capital market and its future projects.

He sought support from PM's Advisor on Finance and Revenue in making successful the CDC's pilot project of Special National Saving Certificates by directing the National Saving Certificates department for full cooperation.

CDC's Chief Executive Officer Badiuddin Akber gave a brief presentation on functioning and benefits of the Professional Clearing Member (PCM).

He mentioned that the solution would provide investors with a completely new and digital experience of Pakistan's capital market while giving them the confidence of assets protection by a reliable and independent third party service provider.

The event was also attended by other capital market representatives including psx Chairperson Dr. Shamshad Akhtar and PSX's CEO Farrukh H.Khan.