ISLAMABAD, Aug 25: Securities and Exchange Commission of Pakistan Chairman Raziur Rehman on Monday said that there was no need to intervene in the stock markets which recorded a historic decline recently. He said that there was a downward trend in the regional markets coupled with a lack of political and economic stability in the country.

He was responding to a question at a press conference held here to launch the SECP’s Rs38 million eServices project. This project is undertaken by the SECP in collaboration with E-Government Directorate (EGD) within the overall framework of National IT Policy approved by the federal cabinet.

The SECP chairman was asked as to why the commission had adopted a hands-up approach to the recent turmoil in the stock markets, which indicated towards a massive change in the regulation mechanism of the SECP for the bourses because, during such crisis in the past, the commission had always intervened by imposing lower locks on the market to save small investors.

In reply to the question, Mr Razi said that it would have been an unnecessary step had the SECP intervened in the market at a time when the political and economic situation in the country and the general bearish trend in regional markets were affecting the market.

In the 2006 stock market crisis, he said, the SECP had intervened by imposing locks in order to stop the illegal short-selling and to provide a couple of days breathing space to small investors to move out if they considered so appropriate.

Answering another query, he said the demutualisation and corporatisation of the stock markets would commence from December this year as relevant amendments had been made in the Finance Bill and rules for the demutualisation process had been prepared.

Earlier, the SECP chairman said the purpose of introducing the eServices project was to improve efficiency and effectiveness of the business processes of SECP with a speedy, transparent and paperless environment, making it easier for the representatives of companies and the business community to interact with and obtain information from the SECP through electronic modes in a swift and easy manner.

The project would facilitate the corporate sector, practitioners, consultants and public at large. It will facilitate the availability of name, incorporation of companies and e-filing of statutory returns. It will enable the promoters and other officers of the company to interact online using the eServices portal, without visiting the Company Registration Offices.

The project is first of its kind in the corporate history of Pakistan, which bring Pakistan at par with other advanced countries such as USA, UK and Australia.

SECP has signed an agreement with National Institute of Facilitation Technology (NIFT) for the provision of the digital signatures at subsidised rates. To obtain the digital signatures the corporate sector is required to log on to http://www.niftetrust.com/.

In order to create awareness of the project SECP arranged a number of seminars in collaboration with professional bodies and chambers of commerce at Lahore, Karachi, Islamabad, Multan, and Faisalabad. The idea behind these seminars was to freely discuss and seek input and advice from the stakeholders before going live.