ISLAMABAD: The Securities Exchange Commission of Pakistan (SECP) has been directed to draft necessary regulation for setting up the ‘Real Estate Regularity Authority’ (RERA) to standardise the real estate sector at par with modern jurisdiction.

Finance Minister Ishaq Dar issued the directives during a presentation made to him by the acting SECP Chairman Tahir Mehmood at the Finance Ministry here on Monday.

By setting up RERA, the government aims to promote and regulate the real estate sector and protect the interests of investors. RERA is already functioning in a number of countries including India, where it was launched recently and in the UAE, where such an authority is functioning since 2007.

The finance minister said the government was keen on developing the secondary debt market with particular focus on the retail segment.

“Trading of government securities at the stock exchanges of Pakistan will encourage participation of small and private investors. The increase in depth of secondary debt market will also contribute in the development of secondary corporate debt market,” he added.

Mr Dar said that a vibrant secondary debt market will pave the way for development of primary debt market and channelising the savings of small investors to the government schemes through the stock exchanges.

“Although the government securities are being actively traded in over the counter (OTC) market, the same is not visible at a single platform. The availability of trading data at a single platform will increase the visibility of secondary debt market, thereby encouraging foreign investment,” he explained.