ISLAMABAD, July 18: Securities and Exchange Commission of Pakistan has directed the managements of stock exchanges to exercise vigilance to ensure that the seats on their boards is acquired only by persons serious about functioning as brokers in accordance with the law.

The SECP Chairman Abdul Rehman Qureshi told Dawn that the directive follows the observation that the new owners of stock exchanges use their position as cover for engaging in other kinds of business. He had, therefore, asked the managements of bourses to lay down clear criteria in this regard.

Meanwhile, the number of new companies listed during 2003 has gone up to three, Qureshi said. These are: (1) T.R.G. (Pakistan) Ltd. with Rs720 million as paid-up capital; (2) International Container Terminal Ltd. with paid-up capital of Rs638 million; and (3) Ittehad Chemicals Ltd. with Rs2650 as paid-up capital.

Apart from the unprecedented boom in the stock market, he said these were the outcome of the growing confidence of investors in the capital market, thanks to the transparent and helpful regulatory environment built up by the government and the SECP.

Moreover, during the first six months of 2003, 11 listed companies floated Term Finance Certificates worth Rs4 billion. Another TFC instrument worth Rs300 million to be floated by a leasing company is in the pipeline.

The SECP Chairman also provided the figures showing steady increase in the number of new companies being incorporated in Pakistan. In June 2000, 1078 new companies were incorporated in June 2001, the number of new incorporations rose by 3pc to 1147, in June 2002 by 7pc to 1380. During 2002-03, as many as 1577 companies entered the market, denoting an increase of 11pc.