Challenges and Prospects of Establishing Stock Exchange Market in Afghanistan

Mr. Akmal Saddique, Mr. Shahzad Anwar

Challenges and Prospects of Establishing Stock Exchange Market in Afghanistan

Mr. Akmal Saddique, Mr. Shahzad Anwar

Volume 2 Issue 1 | Mar 2019

DOI: 10.31841/KJEMS.2021.63

Total Downloads: 15

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Abstract

Currently Afghanistan does not have stock exchange market, and the objectives of this study are to explore the major challenges, government commitment, and to evaluate the current legal system for establishing stock exchange market in Afghanistan. The study conducted interviews based on purposive sampling with six senior financial sector authorities; Textual analysis methodology was used to analyze interviews (Swanson and Holton 2009). Further analysis was based on coding technique for themes, subthemes, codes development. The study found that current legal and regularity structure is not adequate for stock exchange market establishment, due to the challenges like lack of rules, regulation and procedures, sever security issues, instable economy, low literacy rate, lack of specialized accountants and auditors, weak financial system infrastructure, absence of technology platform, low corporate governance and corruption for it is development, government is committed toward its establishment, as primary studies are conducted that suggested to work on the foundations of the stock market and the central bank initiated capital paper trading limited to banks only. The study recommends it is not the right time to commence stock market in the country, instead to focus and use resources on the banking and other financial institutions development, rules and regulation reforms, macroeconomics policies and public educations which will pave away for the stock exchange market establishment in the future.