New institutional investor policy proposed for capital market

A draft framework designed to broaden and organise the participation of institutional entities within the securities market has been officially released. The initiative stems from multiple guiding documents, including a capital market development roadmap and the regulatory body's policy agenda for the fiscal year. It also follows a 21-point action plan focused on capital market strengthening and revival, which was announced by the Ministry of Finance. The newly published draft seeks to provide clear guidance regarding operational procedures, uniformity, and responsibilities for institutional entities entering both primary and secondary market segments. Furthermore, the framework incorporates concepts for necessary legal and regulatory reforms, alongside coordination mechanisms among relevant public and private bodies, to facilitate broader engagement. Traditionally, the nation's capital market has experienced a heavy concentration of individual participants. Authorities anticipate that encouraging the long-term entry of professional and capable institutional entities will significantly improve market depth, liquidity, transparency, and overall financial stability. The board has consequently invited constructive feedback and suggestions from all concerned stakeholders regarding the draft. By establishing structured guidelines for institutional operations, the proposed measures intend to create a balanced and sustainable financial ecosystem. The regulatory body maintains that systematic institutional involvement will help mitigate volatility and foster a more mature investment environment over the coming years.