Pakistan Stock Exchange Proposes Key Regulatory Amendments, Seeks Public Feedback

Stock Exchange Announcements

Karachi: The Pakistan Stock Exchange (PSX) has announced proposals for significant amendments to its regulations, aimed at enhancing market efficiency and introducing Shariah-compliant brokerage services. The proposed changes, open for public comment until July 16, 2024, are part of PSX's efforts to align with global trends and cater to evolving investor needs.

One of the major initiatives under consideration is the transition to a T+1 settlement cycle from the current T+2, reflecting advancements in technology that have facilitated quicker settlements in other major markets worldwide. This move is expected to improve liquidity and reduce credit and market risks. According to information available from the Pakistan Stock Exchange (PSX), the transition to T+1 will affect the Ready Market, ETFs, and DFCs, with SIFC, CSF, and GDS markets already operating on a T+1 cycle.

Additionally, PSX is proposing regulatory adjustments to support the provision of Shariah-compliant brokerage services. This initiative follows amendments notified by the Securities and Exchange Commission of Pakistan (SECP) earlier this year, which seek to expand Shariah-compliant financial services within regulated sectors.

The proposed regulatory changes are detailed in Annexure A and Annexure B attached to the PSX's public announcement. Stakeholders are encouraged to review these documents and submit their comments as outlined in the ‘Guidelines for Submission of Comments’ provided by PSX.

This consultative approach underscores PSX's commitment to transparency and inclusivity in its regulatory processes, aiming to foster a more robust and diverse financial marketplace.