ISLAMABAD (December 03 2005): The Securities and Exchange Commission of Pakistan (SECP) has clarified that the SECP directive issued to the Lahore Stock Exchange (LSE) on November 29, 2005, was capable of immediate implementation without reference to the general body of the LSE.
According to SECP, under Regulation '7.04' of the General Rules and Regulations of the LSE, the LSE was empowered to elect the Chairman of its Board from amongst the member directors.
Through the said directive of November 29, the commission asked the LSE to amend Regulation 7.04, to allow only non-member directors of the LSE to be elected to the board of the exchange.
The SECP is fully empowered under section 34(4) of the SEO 1969 to direct a stock exchange to make any regulation, or to amend or rescind any regulation already made, within such period as it may specify in this behalf.
The approval of this directive may be accorded by the LSE in a meeting of its Board of Directors (in pursuance of Article 79 of its Articles of Association of the LSE) without reference to the general body in a general meeting.