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CDC advent

will encourage

real investors:

says LSE chief

RECORDER REPORT

LAHORE: With the commencement of Central Depository Company of Pakistan Ltd. (CDC) at the three Stock Exchanges, abolition of physical handling of shares would not only eliminate the circulation (influence) of black money on the movement of Index but also encourage the real investors to invest and earn in the stock market. It would revolutionized the trade in the capital market and hidden potential of the market would be realized.

Noshir F. Dastoor, President, Lahore Stock Exchange said in a special meeting with the participants of management course at the Administrative Staff College, Lahore.

Capital market is extremely sensitive to any sort of fluctuation or unusual changes in the socio-economic or political scenario in the country. Its fragility on one side, is a weakness of the capital market at the same time, it is the motivating force in the capital market, the President LSE explained.

Real investors, while injecting their money into the stock market are very cautious and keen to evaluate three points i.e. security, liquidity and rate of return on their investments. After the automated trading is on-line and CDC is functional, transparency would be there and decision making process would become more accurate, Dastoor said in response to a question.

We are very much careful in granting the membership of LSE. It is not due to retaining monopoly of existing members but to avoid the entrance of non-genuine people into the market and monopolize it to meet their own ends", Noshir said.

In the stock trading genuine investors become partner in any industrial venture, after they have bought the shares of that particular venture. By investing their money, they help the business to flourish and a flourishing business brings fortune for the investors, President LSE concluded.