India, Pakistan top stock exchanges for liberalization of capital market

New Delhi: A delegation of top stock exchanges officials from India and Pakistan called for urgent steps for capital market liberalization. At Aman ki Asha interaction organized by Times of India & Jang/Geo group of Pakistan, market participants from across the border said with trade between two neighbours liberalized, it is now time to focus on capital markets. While increasing portfolio investment would definitely be focus of opening capital market, prospects of peace and long-term friendship will come naturally, delegates said.

“If I can have a stake in an ONGC or TCS, my thinking about the country will change. Buying assets in each other’s countries will mean that both nations will look for prosperity of the other,” said, Aftab Ahmad Ch, MD & CEO, Lahore Stock Exchange, who is also secretary general, South Asian Federation of Exchanges (SAFE). Pakistan delegation was led by Imtiaz Haider, Commissioner, securities market division, Securities & Exchange Commission of Pakistan (SECP).

“Under rules laid down by Indian government, every Indian stock exchange can have a foreign investment of up to 26% under which we can welcome investments from Pakistan,” said V M Bhutani, trading member director, DSE.

Indian government allows FDI in securities markets with cap of 26% to countries other than Pakistan. He suggested creation of index of companies that are in compliance with Islamic laws that could be traded in markets across the border. Delegates suggested promoting lower level interactions for the same.

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