Security Exchange Commission, State Bank of Pakistan resolve to strengthen cooperation

Karachi: The Governor State Bank of Pakistan, Mr. Yaseen Anwar and the SECP Chairman, Mr. Muhammad Ali resolved to work in close cooperation to build up a strong and effective regulatory framework for the financial sector. They were expressing their views at a meeting of the Coordination Committee of both institutions.

Mr. Ali stated that regulatory objectives of the two regulators could only be met through a consultative process with all stakeholders and he intended to adopt a participatory approach in fulfilling the SECP mandate.

The SECP will continue to facilitate investors by promoting an efficient and transparent capital market and corporate sector and engendering confidence and faith in the integrity of the market.
The SECP and the SBP established the Coordination Committee in 2003 to deliberate on areas of mutual concern and policy matters to eliminate impediments to development of a robust financial sector.
An MOU was also signed between the SECP and SBP to institutionalize mutual cooperation and promote greater transparency, uniformity and harmonization in the regulatory system. The committee has been holding its meetings on a regular basis.

The main areas of discussion at the meeting included among others: AML/CFT, credit rating companies, development of secondary market, trading of foreign currency futures at Pakistan Mercantile Exchange PMEX, enlistment of insurance companies on panel of banks, collaboration between SBP-SECP on financial literacy program, etc.

The SEC and SBP compared notes on creating a more vibrant debt market in Pakistan by identifying problems and initiatives required, at strategic and operational levels, in consultation with the stakeholders. The two regulators also resolved to take joint measures to combat money laundering and terrorist financing.

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