The Pakistan Stock Exchange Limited (PSX) and the Securities and Exchange Commission of Pakistan (SECP) have formalized a strategic partnership aimed at enhancing market surveillance and regulatory oversight. The agreement, signed on September 23, 2025, establishes a framework for closer cooperation between the two institutions, granting SECP direct access to PSX’s advanced New Surveillance System.
This collaboration is designed to strengthen Pakistan’s capital market infrastructure, improve transparency, and ensure that market activities are monitored with greater efficiency and security. By integrating SECP with PSX’s surveillance technology, regulators will be able to identify and respond to irregularities faster, making the overall market environment more resilient and investor-friendly.
The New Surveillance System, acquired from the Shenzhen Stock Exchange in China, is equipped with state-of-the-art tools for real-time monitoring, analytics, and reporting. It allows regulators to track trading activities, detect anomalies, and enforce compliance more effectively. Both PSX and SECP emphasized that this technological upgrade marks a significant step toward aligning Pakistan’s capital markets with international best practices.
Executives from both institutions highlighted the importance of regulatory coordination in maintaining market integrity. The partnership is expected to enhance communication and data sharing, enabling SECP to oversee market operations with unprecedented speed and accuracy. By leveraging the surveillance system, authorities can better prevent market manipulation, insider trading, and other practices that may undermine investor confidence.
PSX officials noted that the agreement reflects their commitment to adopting global standards in capital market governance. The integration with SECP not only strengthens regulatory capabilities but also builds trust among domestic and international investors. With a more secure and transparent market framework, Pakistan aims to attract greater investment inflows while safeguarding market participants.
SECP representatives emphasized that the collaboration aligns with their broader mandate of ensuring fair and efficient capital markets. By utilizing cutting-edge technology, the regulator can enhance its monitoring capabilities, facilitate timely interventions, and support sustainable market development. The partnership also provides a foundation for future innovations, including predictive analytics and risk-based surveillance models.
Market experts believe that this strategic initiative will have long-term benefits for Pakistan’s financial ecosystem. A robust surveillance system reduces operational risks, improves compliance standards, and strengthens investor confidence. It also sets a precedent for other financial market segments, demonstrating how technology-driven solutions can enhance regulatory effectiveness.
Both PSX and SECP reiterated their shared vision of creating a modern, resilient, and globally competitive capital market. This collaboration underscores the commitment of Pakistan’s financial authorities to adopt advanced technological solutions that promote market integrity, protect investors, and support sustainable economic growth.
The partnership between PSX and SECP is expected to serve as a model for similar collaborations in the region, demonstrating the value of integrating innovative technologies into regulatory frameworks. By combining expertise, technology, and strategic coordination, the two institutions aim to foster a transparent and efficient capital market ecosystem in Pakistan.
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