ISLAMABAD: The Pakistan Stock Exchange (PSX) on Friday held a Gong Ceremony to welcome Bank of Punjab (BOP) on-board as a market maker for debt securities on PSX.
An agreement was signed between PSX and BOP at PSX Trading Hall Karachi, whereby BOP become the first bank to be recognized as Market Maker for both conventional and Shariah Compliant debt instruments on PSX.
The agreement to this effect was signed between Farrukh H. Khan, MD & CEO, Pakistan Stock Exchange, and Zafar Masud, President & CEO, Bank of Punjab, according to PSX press statement received here.
Bank of Punjab, a prominent commercial bank of Pakistan, now becomes a designated Market Maker for debt securities on Pakistan Stock Exchange. This development is in-line with the notification issued by the SECP which allows banks to act as Market Makers for debt securities.
On this occasion, Farrukh Khan, the CEO of PSX, said, that it was indicative of their commitment to the development of Pakistan’s capital markets that BOP was one of the first banks to become a market maker on PSX.
Welcoming the development, he said, this would lead to increased growth and dynamism in the debt market, which he said was crucial for the economic progress of the country.
He urged all stakeholders of financial ecosystem to take Pakistan’s debt market to regional and international levels.
He said that PSX was also in discussions with BOP to bring some of their SME clients to list on the new GEM board.
On the occasion, the BoP CEO, Zafar Masud said, the Bank of Punjab would be the first bank in Pakistan Market Making for both conventional and Shariah Compliant securities as well as corporate debt instruments at the PSX portal.
He said, this has made the bank the first public sector bank offering a bouquet of services in collaboration with PSX: “We see our role expanding beyond a Market Maker for Debt Securities.
Through this agreement, we are committing to becoming a leading player in development of capital markets in Pakistan by enabling greater investor participation and enabling listing of more debt, equity and non-conventional instruments at PSX,” he added.
Speaking about his vision for future cooperation with PSX, he said BoP and PSX can partner in promoting privatization and listing of public sector projects like Punjab Thermal Power and Quaid-e-Azam Solar Power through the Stock Exchange.
Moreover, he added, the bank planned to design instruments to bring projects like Kamyab Jawan Program, SME financing project and low cost housing scheme to PSX platform.
He emphasised on the role of Bank of Punjab in the capital market and economy of Pakistan: “The Bank of Punjab is one of the largest commercial banks in Pakistan serving through a network of 624 branches. Today, BOP stands as one of the biggest banks managing assets in excess of PKR 1.0 trillion and Capital Adequacy Ratio of 17.18%,” he added.
He expressed the hope that with the signing of this agreement, Bank of Punjab would be able to perform market making activities for various debt instruments such as Government Debt Securities.
Market Makers perform the crucial role of providing liquidity and depth to the market by facilitating investors to buy and sell securities through continuously quoting two way prices, i.e. bid and offer prices, he added.
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