ISLAMABAD, Nov 1: While Pakistan’s ranking has declined at the Financial Development Index of 2012, the Securities and Exchange Commission of Pakistan’s ranking has improved by five points, mainly due to structural and organisational reforms introduced in the recent past.

The Financial Development Index of 2012 has been launched by the World Economic Forum.

It highlighted that the SECP secured 37th position out of 62 securities regulators globally, whereas China ranked 38th in the category of regulation of securities and exchanges.

“This is due to SECP’s recent initiatives which include introduction of standard operating procedures in the form of five manuals for a more transparent working of the Commission,” said SECP Chairman Mohammad Ali, adding that these manuals are covering all aspects of enforcement functions of the SECP.

The other major initiatives of the SECP that led to its improved ranking are demutualisation of stock exchanges, the capital market investor education and awareness programme, implementation of the concept of e-IPO and launch of new Takaful rules.

The SECP also introduced new futures contracts at the Pakistan Mercantile Exchange Limited in sugar, wheat, crude oil, silver and gold that aim to fulfill hedging requirements of various groups of investors in the newly developed commodities market.

The Corporate Law Review Commission was also revived and a reform committee was constituted to furnish recommendations for promotion and growth of a sustainable non-banking financial sector.

In addition, the Code of Corporate Governance 2012 has also been introduced revising the existing requirements and making it in line with international best practices.

Moreover, the capital market investor education and awareness programme was launched in July 2012, aimed at making people aware of various financial products and understanding their rights and responsibilities to enable them to make informed investment decision.

A code for the state-owned enterprises is being finalised by the SECP which is expected to streamline operational matters of public sector entities in line with corporate culture.