The China Financial Futures Exchange has welcomed market development steps implemented by the Securities and Exchange Commission of Pakistan (SECP), expressing strong confidence in the future of the country’s capital markets.
In a letter to SECP Chairman Dr Kabir Ahmed Sidhu, Executive Vice President Yu Hong appreciated the commission’s investor-friendly reforms. The Chinese consortium noted that the SECP has played an effective role in resolving regulatory and strategic issues related to increasing Chinese investment in Pakistan’s market infrastructure.
The consortium welcomed progress concerning the Pakistan Stock Exchange (PSX), Central Depository Company (CDC), and National Clearing Company of Pakistan Limited (NCCPL), stating that these measures will contribute to capital market development and enhance international investor confidence. Chinese investors also expressed a commitment to expanding investment, introducing new products at the PSX, and exploring the launch of cross-border exchange traded funds (ETFs).
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, making timely and strict action essential.
The meeting concluded that cooperation between the SECP and NAB will ensure prompt action against violators, strengthen law enforcement, 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 will enhance enforcement capacity, improve accountability mechanisms, and play a key role in discouraging illegal deposit schemes and other financial fraud.
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, whilst all other entities are prohibited from doing so.
