Islamabad Stock Exchange favors creation of National Markets

http://ppinewsagency.com/63981/

According to the local news, SECP gave a proposal on merging of Islamabad stock exchange and Lahore Stock Exchange. This merging will help to have a strategic investor for the demutualized stock exchanges. The managing director said that Islamabad Stock Exchange is in favor of this proposal. He said the process of integration has become easier for worldwide integration of all the stocks in the country through Demutualization and Integration Act 2012. The example of Australian and European Stock Exchanges also depicts that the economies have grown fast with the integration of demutualization. In this way, the integration of all three exchanges would be better option in view of the peculiar circumstances and small scale of the economy of the country. It will help in flourishing security market if this mode is applied in Pakistan therefore ISE forces the integration of all the three exchanges of the country to form a National Market System (MNS) instead of integration with a single bourse. With the integration of all the three stocks the country would be able to enhance governance and the transparency at the stock exchanges and enhance the competition among the brokerage houses which ultimately improve the performance of the stock market.