HOW DOES PSX REGULATE TRADING ACTIVITIES?
The regulatory authority for the securities market and corporate sector in Pakistan is the Securities and Exchange Commission of Pakistan (SECP). The SECP administers the compliance of the corporate laws in the country and is run by commissioners under a chairman.
The Securities and Exchange Commission of Pakistan, is an autonomous regulatory authority, and at the same time provides an accountability mechanism through establishment of a Securities and Exchange Policy Board. All policy decisions are made by the board on the recommendations of the commission and the board is directly answerable to the Parliament.
THE REGULATORY INFRASTRUCTURE OF PAKISTAN STOCK EXCHANGE
Trading Rights Entitlement Certificate Holders (TREC Holders) of the stock exchange and trading at the Exchange are also subject to the discipline of self-regulation under PSX Rule Book of the Stock Exchange.
Trading activities are being monitored through the surveillance terminal to ascertain that, there are no illegal postings and dealings made in any of the issues listed in the Exchange. Through the Compliance and Surveillance Group, compliance of TREC Holders with applicable regulatory framework is monitored.