KARACHI, April 13: Securities and Exchange Commission of Pakistan Chairman Razi-ur-Rahman Khan on Thursday advised the board of Karachi Stock Exchange to follow good governance practices in order to curb manipulation and bring a fair, orderly, transparent and safe market.

“The prime task for the KSE board is to change the perception about market manipulation, market abuse and undesired speculation,” he said while speaking to the newly-constituted board of directors of the exchange.

According to a KSE announcement here, the SECP chairman also desired for a strong management team of experienced, competent and professional people to provide good and prompt results.

Mr Rehman reiterated that he would not like to be involved in micro management and looking for directionless culture. He advised that whatever the actions and decisions are taken by the exchange, the same should be in the interest of and acceptable to all stakeholders.

The SECP chairman made emphasis on strict and stringent risk management measures and improvement and strengthening of the existing market surveillance and control functions at the exchange.

He said risk management and market monitoring and surveillance are the paramount management functions of the KSE and being frontline regulator, it should become more vigilant and alert.

He also emphasized the need for establishment of disaster recovery site, availability of data warehousing, continuous availability of liquidity through CFS and promotion of margin financing, introduction of unique identification number (UIN) system, free-float based index, 30, 60 and 90 days cash settled stock futures, developing derivatives and debt markets and implementation of VaR-base margin system.

Mr Rehman also advised the KSE to ensure timely completion of the process of de-mutualisation and assured full cooperation and support of the commission in the areas of market development and introduction of new products.—APP