‘Loss-making entities should get listed on capital markets’
Staff Report
LAHORE: Pakistan Railways and other loss-making public sector enterprises can be transformed into profit-making ventures—provided these public sector institutions are listed on capital markets, Lahore Stock Exchange (LSE) Managing Director/CEO Aftab Ahmad Chaudhry said on Friday.
LSE Managing Director was giving a briefing to the members of Lahore Economic Journalists Association (LEJA). He said the capital markets in the country have enough depth for new companies, however, he said that the investors’ confidence was the only hurdle in the growth of capital markets. Chaudhry pointed out that trading volume of all three stock exchanges was representing an alarming situation, which needed political and economic stability. He said that there is a dire need that “government show its will and restore investors’ confidence to regain momentum of bourse.”
Quoting the example of PIA, he said that if other state-owned enterprises like Pakistan Steel Mills (PSM) were listed on the capital market, “their financial health could be gauged easily.”
He said that state-owned enterprises have major contribution in Pakistani stock markets and government also is earning handsomely due to their listing.
He said that the LSE had initiated a number of programmes to protect the investors’ rights and ensure transparency. The LSE was the first bourse in Pakistan, which had set up a regulatory division and nominated a Chief Regulatory Officer (CRO) to redress the complaints of investors. Earlier, on most occasions it had been observed that during the arbitration process only brokers were benefited and this step would bring transparency in dispute resolution process.
Chaudhry said that the LSE was also establishing an online database, which would be available on the LSE website and would indicate brokers financial health. In addition, technology upgrade was underway to ensure transparency and accountability in the LSE.
He further said that LSE had urged the Securities and Exchange Commission of Pakistan (SECP) to set up an audit trail system, “so that all transactions could be completed in a transparent manner.”
He pointed out that the LSE had proposed to set up an automated system, which would send a short message to investor in acknowledgment of their transactions.
Speaking about the market potential, Chaudhry pointed out that there was need of confidence only as due to highest ever mark-up rates the companies could manage cheap finances as compared to the banking sector.
Responding to a question, he said all these initiatives would be implemented in the next couple of months except where SECP approval was required.
LSE MD also announced an annual scholarship for LEJA members for higher education in the field of economics. He also announced a merit-based scholarship for the children of LEJA member, which would be initially offered for matric and O level and later would be offered for higher education too.
Home |
Business
Open all references in tabs: [1 – 10]