Staff Reporter Karachi
Pakistan Stock Exchange (PSX) held a gong cere-mony to welcome BankIslami Pakistan Limited (BankIslami) as ‘Market Maker’ for Shariah-compliant debt securities listed on PSX.
The PSX management welcomed the BankIslami team and started the proceedings by striking the gong to mark the beginning of the trading day and the onboarding of BankIslami as market maker.
Present at the occasion were Mr. Farrukh H. Khan, MD & CEO PSX; Mr. Ahmed Chinoy, Board Member PSX; Syed Amir Ali, President & CEO BankIslami; and senior management of both the organizations.
BankIslami successfully fulfilled all the require-ments of market maker and was notified by PSX on June 15, 2021 as Designated Market Maker for Pakistan Energy Sukuk I and II.
With this notification and the completion of regula-tory formalities, BankIslami has become the first Islamic bank in Pakistan approved by SECP as li-censed Consultant to the Issue (CTI) to act as In-vestment Agent & Advisor for Shariah compliant debt securities, both listed and privately placed.
BankIslami celebrated these milestones with the local bourse and the market through this magnani-mous gathering.
Welcoming BankIslami as market maker on PSX, Mr. Farrukh Khan, the MD PSX, said, “A large and liquid debt capital market is very important for the economic development of Pakistan.
In line with the Capital Market Development Plan, the SECP and PSX recently introduced regulatory changes allow-ing banks to become market makers”.
He added, “The addition of BankIslami Pakistan Limited, one of the top-tier Islamic banks in Paki-stan, as market maker for Shariah-compliant debt securities on PSX is a significant step forward in the on-going collaboration between banks and the capi-tal markets to bring liquidity and depth to Pakistan’s debt capital market”.
Talking about the new responsibility of BankIslami as market maker of debt securities on PSX, Syed Amir Ali, President & CEO BIPL, said, “As a mar-ket maker for the designated securities (PESC I & PESC II), we will help to add depth in the market for Islamic Fixed Income Securities by offering both bid and ask quotes to create liquidity for these secu-rities.
BankIslami applauds PSX’s initiative to allow mul-tiple market makers for a single security because it would not only add transparency to the market but would also tighten the spreads which is very condu-cive for market participants and investors.