ISLAMABAD, May 9, 2024 – The Securities and Exchange Commission of Pakistan (SECP) has announced a significant simplification in the process of account openings for retail investors through its new Centralized Gateway Portal (CGP).
The announcement came during a workshop at SECP’s headquarters, which focused on the oversight of trading activities on the Pakistan Stock Exchange (PSX).
This initiative is set to streamline the way retail investors access various financial services, allowing them to open accounts with brokers, asset management companies, and insurance firms more efficiently. During the workshop, SECP officials emphasized the importance of the stock exchange in capital formation, financial inclusion, and investment diversification.
The session provided detailed insights into the trading, clearing, settlement, and custodial functions managed by the Capital Market Infrastructure Institutions (CMIIs), which include the Pakistan Stock Exchange, the National Clearing Company, and the Central Depository Company of Pakistan Limited. These bodies play a crucial role in maintaining the integrity and efficiency of the market’s infrastructure.
A significant portion of the workshop was dedicated to introducing the CGP. SECP highlighted the portal’s role in reducing bureaucratic hurdles and simplifying regulatory processes. By centralizing data and documentation, the CGP allows retail investors to open accounts across multiple financial intermediaries without the need to repeatedly submit the same information.
“The CGP is designed to enhance the investor experience by making it easier, faster, and more convenient to participate in the financial markets,” explained a SECP spokesperson. “This is part of our ongoing effort to encourage more public participation in investing and to ensure our markets remain vibrant and competitive.”
Additionally, the workshop included a comprehensive session on market surveillance. SECP officials discussed their mandate and tools for monitoring market activities to prevent abuses such as insider trading and market manipulation. Real-life case studies were used to illustrate these points, enhancing participants’ understanding of the complexities involved in maintaining market integrity.
Abdul Rehman Warraich, SECP’s Commissioner for Securities Markets, detailed the commission’s surveillance strategies and fielded questions from participants, emphasizing SECP’s commitment to upholding transparency and fairness in the financial markets.
This reform by the SECP is expected to not only facilitate greater participation in the financial markets by simplifying the investment process but also bolster investor confidence through improved regulatory oversight and market transparency. With the introduction of the CGP, Pakistan moves a step closer to global standards in financial market accessibility and regulation.
