Tarin launches Pakistan’s first PCM for capital market

KARACHI: Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin on Friday inaugurated the first Professional Clearing Member (PCM) at the CDC House, Karachi, a statement said.

Speaking at the occasion, Tarin said: “It is the top priority of our government to facilitate businesses and improve the ease of doing business environment. This initiative of the Professional Clearing Member is a very significant and timely initiative by [the] SECP [Securities and Exchange Commission of Pakistan] and very well executed by the Central Depository Company (CDC).”

“It is very important for our capital market that we introduce such novel concepts, which will bring more transparency and efficiency in our market. CDC has won the trust and confidence of the investors, [the] regulator and all [the] stakeholders in the market with its efforts of market development and investor facilitation.”

The new PCM regime has been successfully implemented after the introduction of the relevant regulatory framework by the SECP and the capital market infrastructure entities, leading to the launch of EClear Services Limited (ESL), i.e., CDC, PSX, NCCPL and Pakistan Kuwait Investment Company, with CDC playing the lead role of the project manager.

SECP chairman Aamir Khan said: “The PCM regime shall address two longstanding issues: risk of custody defaults by transferring custody to the PCM, and expanding the retail investor base by empowering small brokers.”

Tariq Rafi, member of the CDC’s board of directors, welcomed Tarin and other guests after which CDC chairman Moin Fudda addressed the audience.

CDC chief executive officer Badiuddin Akber presented a brief presentation to the audience, explaining the working and benefits of the Professional Clearing Member.

He said: “The solution will provide investors with a completely new and digital experience of Pakistan’s capital market, while giving them the confidence of asset protection by a reliable and independent third party service provider.”

The event was well attended by the capital market representatives, including PSX chairperson Dr Shamshad Akhtar and PSX chief executive officer Farrukh Khan.