The China Financial Futures Exchange has commended the Securities and Exchange Commission of Pakistan (SECP) for its recent investor-friendly reforms, expressing strong confidence in the future of Pakistan's capital markets. In a letter addressed to SECP Chairman Dr. Kabir Ahmed Sidhu, Executive Vice President Yu Hong appreciated the commission's support and effective role in resolving regulatory and strategic issues related to increasing Chinese investment in Pakistan's market infrastructure.
Chinese Consortium Welcomes Progress on PSX, CDC, NCCPL
The Chinese consortium welcomed progress on matters concerning the Pakistan Stock Exchange (PSX), Central Depository Company (CDC), and National Clearing Company of Pakistan Limited (NCCPL). According to the letter, recent measures would contribute to the development of Pakistan's capital market and enhance international investor confidence. Chinese investors also expressed commitment to further expanding investment, working on introducing new investment products at the PSX, and exploring the launch of cross-border exchange traded funds (ETFs). The consortium praised the resolution of long-pending strategic matters under Sidhu's leadership, describing the future of Pakistan's capital markets as promising.
SECP and NAB Join Forces Against Financial Fraud
Separately, the SECP and the National Accountability Bureau (NAB) have agreed to enhance mutual cooperation to ensure effective action against illegal investment schemes and unlawful deposit-taking. NAB Chairman Nazir Ahmed Butt visited the SECP head office, where a meeting with Sidhu led to an agreement to formalise a memorandum of understanding (MoU) focusing on joint action, information sharing, and coordinated enforcement.
Sidhu stated that illegal deposit schemes lure citizens through false promises of unusually high returns, resulting in significant financial losses. Such activities erode public trust in the financial system and harm legitimate business and financial institutions. Timely and strict action against those involved is essential. The meeting concluded that cooperation between the SECP and NAB would ensure prompt action against violators, strengthen enforcement of the law, and help provide timely relief to affected citizens.
Butt reaffirmed his commitment to close collaboration with the SECP to eliminate financial crimes and safeguard public interests. Stronger coordination between the two institutions would enhance enforcement capacity, improve accountability mechanisms, and play a key role in discouraging illegal deposit schemes and other financial fraud.
Public Clarification on Company Registration and Deposit Authority
The SECP also clarified for the public that mere registration of a company with the commission does not authorise it to collect investments or deposits from the public. Under Section 84 of the Companies Act 2017, only banking companies and institutions duly licensed by the SECP are permitted to accept public deposits, while all other entities are prohibited from doing so.
