Share this story!            

Pakistan market back on FTSE watch list

Staff Report

ISLAMABAD: Following high level consultations with the Securities and Exchange Commission of Pakistan (SECP), FTSE Group (“FTSE”), the global index provider has deferred its decision to remove Pakistan from the FTSE Global Equity Index Series (“GEIS”) from June 2008. The announcement to the above effect was made by FTSE from its London office on January 17, 2008.

It may be noted that FTSE as part of its annual country classification review, on September 12, 2006 announced that they had placed Pakistan on its Watch List for possible removal from FTSE Global Equity Index Series(GEIS) used by institutional investors worldwide.

Consequently FTSE had on September 20, 2007 announced the results of its annual country classification review, whereby, Pakistan was to be removed in June 2008 from the FTSE Global Equity Index Series stating that the stock market fails to meet the minimum entry requirements for quality of markets criteria.

It should be noted that to facilitate market development and regulation, the SECP has in recent years, launched a plethora of reforms in the backdrop of its mission to “develop a fair, efficient and transparent regulatory framework, aimed at fostering growth of a robust corporate sector and broad based capital market in Pakistan.” Substantive reforms in the areas of risk management; governance and transparency; market development; investor protection and investor education have been implemented. These provided due impetus to development of existing buoyant and broad-based capital market in the country. In the light of such significant reforms in the Pakistan’s capital market, it came as a surprise that Pakistan was being excluded from the FTSE GEIS.

The Securities and Exchange Commission of Pakistan (SECP) taking immediate action approached FTSE and held a series of dialogue which included personal representation by the Chairman SECP at the London office of FTSE, as well as arranging an international Conference Call with the FTSE Country Classification Committee wherein Key Market Participants of Pakistan Capital Market also participated.

Home | Business

Share this story!