Finance Adviser launches Pakistan’s first PCM for capital market after regulatory framework introduction by SECP

As a historic achievement in the Pakistani capital market landscape, the Prime Minister’s Advisor on Finance and Revenue, Mr. Shaukat Tarin, formally inaugurated the first Professional Clearing Member (PCM) on November 26, 2021 at CDC House, Karachi.

Speaking on the occasion, Mr. Shaukat Tarin said:

“It is our government’s top priority to facilitate business and improve the ease of doing business. This initiative of the Professional Clearing Member (PCM) is a very significant and timely initiative of SECP and very well executed by CDC. It is very important for our capital market that we introduce such novel concepts that they will bring more transparency and efficiency in our market. CDC has earned the trust of investors, the regulator and all market stakeholders with its market development and investor facilitation efforts. “

The new PCM regime has 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) e.g. CDC, PSX, NCCPL and Pakistan Kuwait Investment Company, with CDC playing the lead role of the project manager.

Speaking on the occasion, SECP Chairman Aamir Khan said that

“The PCM regime will address two long-standing issues: the risk of custody default by transferring custody to the PCM and expanding the retail investor base by empowering small brokers.”

Mr. Tariq Rafi, a member of the CDC Board of Directors, welcomed Mr. Tarin and other guests, after which CDC President Mr. Moin Fudda addressed the audience. CDC CEO, Mr. Badiuddin Akber, made a brief presentation to the audience explaining the work and benefits of the Professional Clearing Member. He mentioned,

The solution will provide investors with a completely new and digital experience of the Pakistani capital market, while giving them the confidence of asset protection from a trusted and independent third-party service provider. “

The event was well attended by representatives from the capital markets, including PSX President Dr. Shamshad Akhtar and PSX CEO Mr. Farrukh Khan.

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