NCCPL further delays KYC Information System for Pakistan Stock Exchange

KARACHI: The national Clearing Company of Pakistan (NCCPL) has further delayed the implementation of KYC information System (KIS) due to revision in Know Your Customer Organization (CKO) regime.

It may be mentioned here that despite severe trust crisis and default of brokers, the key investor protection measures like KYC and broker regime are being delayed on one pretext or the other.

The brokers’ fraternity has been expressing dissatisfaction over the policies of the management of Pakistan Stock Exchange (PSX), as the investor base as well as the value has declined significantly due to poor market performance.

Richard Morin, a Canadian national and first-ever foreign head of the bourse, joined the PSX in January 2018.  He had set a target of increasing PSX investor base by ten folds, now that he is completing half of his two-year term, the investor base is still hovering around 250,000.

The brokers are also concerned over Morin’s stance that 40 percent of investor returns are eaten up by the brokerage firms, saying this mindset is in conflict with the position Morin is holding at Pakistan Stock Exchange (PSX).

There are reports that a brand new Toyota Revo has been purchased for MD PSX and around Rs20 million are being spent on making the vehicle bomb proof. According to brokers, such a move is not justified with a loss making entity and a vote of no confidence on country’s law enforcement and security agencies who have worked hard in restoring, law and order and national security.

Brokers say that how the MD would attract foreigners sitting in a bomb proof vehicle, as the foreigners would always question and doubt the safety of their funds looking at the custodian who feels insecure.

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