The Securities and Exchange Commission of Pakistan (SECP) has unveiled a homegrown application designed for stock market surveillance and analysis of stock market data. The SECP’s market surveillance team shared insights with the media, revealing that the Pakistan Stock Exchange (PSX) has also acquired a surveillance system from the Shenzhen Stock Exchange capable of generating real-time alerts.
During the briefing, the SECP’s team highlighted the regulatory body’s mandate in market surveillance, educating participants about various forms of market abuse such as insider trading and market manipulation. They provided an overview of the modern surveillance tools deployed at both the SECP and PSX.
Participants were acquainted with triggers for detecting market abuses, including system-based alerts, referrals, and complaints. Case studies were presented to enhance understanding, particularly focusing on insider trading and market manipulation.
The workshop also delved into risk indicators such as index performance, liquidity, settlement-to-trade ratio, relative strength index, broker exposure, and volume leaders in leverage. The SECP apprised participants of various risk factors such as liquidity, leverage, volatility, holdings, redemptions, solvency risk, reinsurance, and investment risk.
In conjunction, the SECP conducted a financial reporting workshop addressing factors impacting performance and causing volatility in the equities market. Senior journalists from print and electronic media attended the seminar.
Abdul Rehman Warraich, Commissioner of Securities Market Division (SMD), elucidated the role of the stock exchange as a hub for capital formation, financial inclusion, and investment diversification. He addressed queries regarding the stock exchange’s functions and regulatory framework.
Musarat Jabeen, Executive Director and Chief Spokesperson of SECP, briefed participants on various reforms initiated by the SECP to fortify capital and equity markets, highlighting recent reforms for safeguarding the interests of minority shareholders.
The participants received insights into the trading, clearing, and settlement functions of the PSX, the National Clearing Company, and the Central Depository Company of Pakistan Limited.
SECP officials presented a detailed overview of the digital online account opening process, the KYC framework, and the newly introduced Centralized Gateway Portal for retail investors. The streamlined process requires filling out standardized one-time account opening forms, KYC, and CDD with the requisite information and documents across all asset classes in the securities market, asset management companies, and insurance companies.
