Gong ceremony: PSX welcomes BIP as market maker – markets

KARACHI: The Pakistan Stock Exchange (PSX) held a gong ceremony on Monday to welcome BankIslami Pakistan Limited (BankIslami) as “market maker” for Sharia-compliant debt securities listed on PSX. PSX management welcomed the BankIslami team and kicked off the process by striking the gong to mark the start of the trading day and the integration of BankIslami as a market maker. Present on the occasion were Farrukh H Khan, MD and CEO of PSX; Ahmed Chinoy, member of the board of directors of PSX; Syed Amir Ali, Chairman and CEO of BankIslami; and senior management from both organizations.

BankIslami has successfully completed all market maker requirements 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 regulatory formalities, BankIslami became the first Islamic bank in Pakistan to be approved by SECP as a Certified Issuance Consultant (CTI) to act as an Investment Agent and Advisor for Securities. Shariah-compliant debt, both listed and privately placed. BankIslami celebrated these milestones with the local stock exchange and the market through this magnanimous gathering.

Hailing BankIslami as market maker on PSX, Farrukh Khan, MD PSX, said that a large and liquid debt capital market is very important for Pakistan’s economic development. In line with the Capital Market Development Plan, SECP and PSX recently introduced regulatory changes allowing banks to become market makers. He said the addition of BankIslami Pakistan Limited, one of the leading Islamic banks in Pakistan, as market maker for Shariah-compliant debt securities on PSX is an important step in the ongoing collaboration. between banks and capital markets to bring liquidity and depth to the Pakistani debt capital market.

Speaking about BankIslami’s new responsibility as a debt securities market maker on the PSX, Syed Amir Ali, President and CEO of BIPL, said: “As a designated securities market maker (CFSP I & PESC II), we will help deepen the Islamic fixed income market by offering both bid and ask prices to create liquidity for these securities. BankIslami applauds PSX’s initiative to allow multiple market makers for a single security as this would not only add transparency to the market but also tighten spreads which is very favorable to market participants and investors. As an Islamic bank, blank selling and short selling are prohibited; therefore, the Bank, while adhering to Shariah principles, must maintain an inventory of the underlying Shariah-compliant securities.

To increase the supply of competitively priced Sharia-compliant securities, BankIslami, as an advisor and investment agent, helps Pakistani state-owned company – PIA to raise Rs 20 billion through GoP guarantee, eligible SLR, privately listed, Sharia Compliant Sukuk to be issued through the PSX Book creation process and is named “PIA Sukuk-I”. For this historic public sector, SLR-eligible Sukuk issues, the National Bank of Pakistan (NBP) and BIPL Securities Limited are our partners as joint bookkeepers. We would like to take this opportunity to thank the Ministry of Finance, SBP, SECP and in particular PSX for providing their advice, support and approvals to make this transaction a joint success. “

Last year, BankIslami successfully completed the IPO and listing of BankIslamiEhadSukuk, which turned out to be the first additional Level 1 ModarbaSukuk listed in Pakistan. Bank IslamiEhadSukuk not only helped the bank strengthen its Tier 1 capital, but also gave investors access to a listed Sharia compliant instrument. The confidence shown by investors in BankIslami, especially in the difficult times due to Covid-19, has been overwhelming. Currently, Sukuk is traded at face value and has an investor base of 185 investors, of which 30 are institutional investors and the rest are individuals.

Copyright Business Recorder, 2021

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