News: WEF hails SECP; improves ranking to 55th: Global Competitiveness Report
Publication: Business Recorder
Date: September 8, 2012
Web Address:- http://www.brecorder.com/market-data/stocks-a-bonds/0/1235077/
WEF hails SECP; improves ranking to 55th: Global Competitiveness Report
September 08, 2012
The Global Competitiveness Report (2012-13) issued by the World Economic Forum has appreciated the performance of the Securities and Exchange Commission of Pakistan (SECP) as the SECP has been ranked 55th in 2012-13, as compared to 70th in 2011-12.
This acknowledgement by the World Economic Forum gives us immense pleasure, the SECP chairman, Muhammad Ali, told reporters here on Friday. We have taken many initiatives and we are really glad that our performance has been internationally recognised and appreciated, he said. Referring to the Global Competitiveness Index, Muhammad Ali said that according to global ranking, regulations of securities exchanges were placed at 55th in 2012-2013 against 70th in 2011-2012.
Similarly, ranking of strength of auditing and reporting standards now stood at 86th in 2012-13 against 103 in 2011-2012. Sharing details of the SECP’s recent initiatives, SECP Chairman said that the demutualization of stock exchanges has been achieved. It will lessen the conflicts, which were found in the mutualized set-up where the brokers enjoyed rights of ownership, decision-making and trading. It will support enhanced governance and transparency at the stock exchanges and will bring about greater balance between the interests of various stakeholders.
The capital market investor education and awareness program was launched in July 2012. It is aimed at making people aware of various financial products and understanding their rights and responsibilities to enable them to make informed investment decision. The revised Code of Corporate Governance was launched in April 2012. And a similar code for the state-owned enterprises is being finalised. Since May 1, 2012, functional websites have been made mandatory for the listed companies.
In May 2012, the SECP was elected to the executive board of the International Organisation of Securities Commission (IOSCO), said Ali. Set up in 1983, the IOSCO is a Madrid-headquartered organisation with 182 members. The SECP introduced and implemented the concept of e-IPO. New takaful rules have also been issued. New equity, derivatives products and commodity futures contracts, ie, exchange traded fund, index options, futures contract in sugar and crude oil has been introduced.
Speaking on the occasion, Amir Jahangir, CEO, Mishal, World Economic Forum’s partner institute in Pakistan, spoke highly of the performance of the SECP, describing it as amazing. According to WEF ranking, country has been improved for burden of government regulations from 76 in 2011 to 62 in 2012, efficiency of legal framework in challenging regulations ranking has been downgraded from 79 in the world to 109.
Ranking in ethical behaviour of firms also downgraded from 100th to 108th in the world, however, ranking in strength of auditing and reporting standards improved from 103 last year to 86th in 2012. Efficiency of corporate boards ranking downgraded from 101 last year to 111 in 2012, ranking in protection of minority shareholders interest’s improved from 88th to 81 in 2012, strength of investors’ protection downgraded from 27th in 2012, 28th in 2011 to 29th in 2012.
Ranking in intensity of local competition improved from 91 to 85th in world in 2012, ranking in number of procedures required to start a business downgraded from 107 to 110 in 2012. Ranking in time required to start a business also downgraded from 83 to 87th in 2012-13.
Ranking in reliance of professional management downgraded from 88th to 101 in 2012, ranking in the area of arrangement of finances through stock market downgraded from 51st in 2011 to 54th in 2012, ranking in venture capital availability downgraded from 45th to 55th in 2012. Regulation of securities exchanges was 76th during 2012 which improved to 7th in 2011 and further improved to 55th in 2012, Amir Jahangir added.