News: WEF’s Global Competitiveness Report 2012-13 , SECP’s ranking improves from 70 last year to 55
Publication: Daily Times
Date: September 8, 2012
Web Address:- http://www.dailytimes.com.pk/default.asp?page=2012\09\08\story_8-9-2012_pg5_2
|Saturday, September 08, 2012|
|WEF’s Global Competitiveness Report 2012-13SECP’s ranking improves from 70 last year to 55 Staff Report
ISLAMABAD: The Global Competitiveness Report 2012-13 issued by the World Economic Forum (WEF) has appreciated the performance of the Securities and Exchange Commission of Pakistan (SECP). Consequently, the SECP has been ranked 55, as compared to 70 last year.
This acknowledgment by the WEF gives us immense pleasure, SECP Chairman Muhammad Ali said on Friday. We have taken many initiatives and we are really glad that our performance has been internationally recognised and appreciated, he said.
Elaborating on the SECP’s recent initiatives, Ali said that the demutualisation of stock exchanges has been achieved. It will lessen the conflicts, which were found in the mutualised 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 programme 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.
New equity, derivatives products and commodity futures contracts, like, exchange-traded fund, index options, and futures contract in sugar and crude oil has been introduced.
Speaking on the occasion, World Economic Forum’s partner institute in Pakistan Mishal CEO Amir Jahangir spoke highly of the performance of the SECP, describing it as amazing.
According to WEF ranking 2012-13, the 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 to 109 in the world. Ranking in ethical behaviour of firms also downgraded from 100 to 108 in the world, however, ranking in strength of auditing and reporting standards improved from 103 last year to 86 in 2012.
Efficiency of corporate boards ranking downgraded from 101 last year to 111 in 2012, ranking in protection of minority shareholders interests’ improved from 88 to 81 in 2012, strength of investors protection downgraded from 27 in 2012, 28 in 2011 to 29 in 2012. Ranking in intensity of local competition improved from 91 to 85 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 87 in 2012-13. Ranking in reliance of professional management downgraded from 88 to 101 in 2012, ranking in the area of arrangement of finances through stock market downgraded from 51 in 2011 to 54 in 2012, ranking in venture capital availability downgraded from 45 to 55 in 2012. Regulation of securities exchanges was 76 during 2010, which improved to 70 in 2011 and further improved to 55 in 2012.