Pakistan Stock Exchange formally launches ETFs
KARACHI: The Pakistan Stock Exchange (PSX) on Tuesday held an impressive ceremony to formally mark the launch of Exchange Traded Funds (ETFs).
According to a statement, These ETFs are NIT Pakistan Gateway Exchange Traded Fund, UBL Pakistan Enterprise Exchange Traded Fund, Meezan Pakistan Exchange Traded Fund, and NBP Pakistan Growth Exchange Traded Fund.
The ceremony was attended by PSX Board Chairman Sulaiman S Mehdi, PSX CEO Farrukh H Khan; Securities and Exchange Commission of Pakistan Chairman Aamir Khan (chief guest), SECP Commissioner Farrukh Sabzwari, and senior management of other capital market entities.
Speaking on the occasion, PSX CEO Farrukh Khan said, “The launching of ETFs is an important development in the PSX growth story. Globally, ETFs are now probably the single largest asset class, worth over $7 trillion in the market cap”.
“So, it is imperative that we bring this innovative instrument to investors in Pakistan’s capital markets. We hope that this product will be a popular investment option for the retail and institutional investors,” he added.
He urged brokers and AMCs to produce research and educate investors about unique and attractive investment products.
On this occasion, SECP Chairman Aamir Khan said, “The commission is committed to creating a more competitive and efficient playing field to ETFs by addressing tax disparities, achieving tax credit and allowing investments in ETF through Special Convertible Rupee Accounts (SCRA)”.
He said SECP is also taking measures to encourage more market makers to come up, increase awareness, expand the outreach of ETFs and make ETFs available not just at ready counters, but at each and every counter including Futures, MTS etc.
Khan also announced that another set of ETFs was under the approval process, demonstrating that the market and investors are anticipating growth over the near term.
The ETF is an investment product which combines the returns offered by the stock market with the diversity offered by a mutual fund. It is a cost-effective, transparent and provides diversified investment opportunities to investors.
