KARACHI
Capital markets play a vital role in the economy of any country which mostly comprises over the private-public companies. Number of participants of capital market is the main force which supports the bourse in any crisis. Pakistan have a very low number of investors either they are direct or indirect as compared to other countries of the region, expert observed while talking to The Nation here on Sunday.
Mohammd Shahid Naseer Senior Manager at Institute of Capital Market while talking to The Nation informed that the total number of investors in Pakistani capital market are very low, comparatively the neighbouring country Bangladesh having a large number of participants in its capital markets which is around 4500,000 while the participants of capital markets in Pakistan are 280,000, he added.
He said that increase in direct investments is the only way to reduce the risk factor of capital market, high number of stakeholders creates depth which supports the bourse at the time of fluctuation, he added.
There is no hurdles to register a new company in stock exchange compared to the international markets, the main issue is the lack of awareness of investors about the capital market, he added while commenting over the query about the tough rules of Securities and Exchange Commission of Pakistan for new companies registration.
Shahid said there is no government fund for investor awareness in Pakistan and we haven’t seen a long term planning to scale up the opportunities in capital markets, he added and said most of the developing countries investing million of dollar to further expand their equity markets through investor awareness programme specially Malaysia and Singapore.
Through, Independent Financial Advisory at various points like micro banks outlets in many parts of the country which successfully cater the Pakistani market, we can give a better start to over society that provides an easy access to a common man as an investor to capital market. He informed that new reforms in regulatory frame work gives the new edge to capital market including technical growth like video conferencing and other initiatives reduced the delay tactics in market. Nadeem Maulvi Director MM Securities while talking to The Nation said mostly short time investors facing trouble in equity market and the main reason of that was lack of awareness, he added and said study of market is very important for an investor.
He also condemned investors who shake the market performance especially during such situations which demands a supportive role from their stakeholders.
Talking over the current scenario he said most of the investor suffering from loss but if seen over the international investor performance, they played carefully with calculation and start buying at low prices and wait for good results.
Nadeem said through the registration of new companies in equity markets we can accelerate the economical activity in the country that gives good results in term of profit as compared to the banks.  He shows concern over the role of SECP and said the tighten rules are the major hurdle in development of this sector.