Karachi Stock Exchange not to accept SECP decision

KARACHI (December 02 2005): The brokers on the Karachi Stock Exchange (KSE) have decided to hold elections as per schedule for the next year member directors on Thursday.

According to the sources, several brokers held an informal meeting at the KSE around 3.00 pm at the auditorium and decided not to pursue the stock market regulator, the Securities and Exchange Commission of Pakistan (SECP), to withdraw its decision on the appointment of non-member director for the chairman for the new year.

It was also decided to hold elections as per the given timetable and will elect board directors from among the stockbrokers.

The KSE was asked to respond to the directives in writing but sources said that the informal meeting of the brokers has decided not to respond to any query of the stock market regulator and suggest any new proposals.

Earlier, the KSE was of the view that it is not possible to amend the Articles of Association of the Karachi Stock Exchange without giving 21 days notice for an extraordinary general body meeting and passing a special resolution to restrict the office of the chairman to non-elected director.

These members also discussed the business plan devised under the demutualization and also took consent from the fellow brokers.

Detailed discussions were held on the basic principle of fair and adequate compensation to existing members as shareholders as well for enjoyment of trading rights.

Members do not want the value of their card reduced as they have paid a hefty amount in purchasing them. Therefore, there has to be some kind of a moratorium before membership of the exchange is opened. Until then, the trading rights have to remain transferable through purchase only.

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