LAHORE - The loss-making public sector enterprises including Pakistan Steels and Railways can become profitable by enlisting on the stock exchanges to raise capital. LSE Managing Director Aftab Ahmad Chaudhry was giving briefing to the members of Lahore Economic Journalists Association (LEJA) at LSE Auditorium here on Friday. He tried to dispel the impression that capital markets in the country did not have enough depth for new companies, investors confidence was the only hurdle in the growth of capital markets. Quoting the example of PIA, he said that if other state owned enterprises like Pakistan Steel Mills (PSM) is listed on the capital market it financial health could be improved. He said that state owned enterprises have major contribution in Pakistani stock markets and government also earning handsomely due to their listing. Highlighting the present bourses situation, Chaudhry pointed out that trading volume of all three stock exchanges was representing an alarming situation, which needed political and economic stability. He stressed that there was a dire need for the government as well as the investors to restore the lost glory of the bourses. He said that the Lahore Stock Exchange had initiated a number of programmes to protect the investors rights and ensure transparency. The LSE was the first bourse in Pakistan, which had set up a regulatory division and nominated a Chief Regulatory Officer (CRO) to redress the complaints of investors. Earlier, on most occasions it had been observed that during the arbitration process only brokers were benefited and this step would bring transparency in dispute resolution process. Chaudhry said that the Lahore Stock Exchange was also establishing an online database, which would be available on the LSE website and would indicate brokers financial health. In addition, technology upgradation was underway to ensure transparency and accountability in the LSE. He said that Lahore Stock Exchange had urged the Securities and Exchange Commission of Pakistan (SECP) to set up an audit trail system, so that all transactions could be completed in a transparent manner. He pointed out that the LSE had proposed to setup an automated system, which would send a short message to investor in acknowledgment of their transactions. Speaking about the market potential, Chaudhry pointed out that there was need of confidence only as due to highest ever mark-up rates the companies could manage cheap finances as compared to the banking sector. Responding to a question, he said all these initiatives would be implemented in the next couple of months except where SECP approval was required. LSE MD also announced an annual scholarship for LEJA members for higher education in the field of economics. He also announced a merit based scholarship for the children of LEJA member, which would be initially offered for matric and O level and later would be offered for higher education too.