KARACHI: The Karachi Stock Exchange (KSE) approved on Monday the schemes of its integration with the Lahore and Islamabad stock exchanges besides changing its name from KSE to the Pakistan Stock Exchange (PSE) Limited.
In an extraordinary general meeting of its shareholders, the KSE approved the amendments to the Memorandum and Articles of Association of KSE in order to affect these changes, according to a press statement. Over 34% of KSE shareholders attended the meeting either in person or through proxy. Out of 11 directors on the KSE board, as many as eight directors also attended the meeting. KSE Board Chairman Muneer Kamal chaired the meeting and described briefly the background whereby the process of the integration was undertaken as a result of a memorandum of understanding entered into by the three stock exchanges on August 25.
In view of the consolidation of business of stock exchanges, all Trading Right Entitlement Certificates (TREC) holders of Lahore and Islamabad stock exchanges will be issued TREC of the PSE without any fee. They will be treated at par with existing TREC holders of the KSE by equally having direct access to the KSE’s deep liquidity pool and vibrant trading platform.
With the cessation of the licences of Lahore and Islamabad bourses to function as stock exchanges, the PSE will emerge as the single national stock exchange of the country serving investors throughout the country in a seamless and efficient manner.
The EOGM unanimously approved the special resolution without any change, the press statement added.
Reiterating its role as market facilitator, Securities and Exchange Commission of Pakistan (SECP) Chairman Zafar Hijazi assured enhanced corporate governance of the PSE.
In a meeting with Khalid Mirza, former chairman of the Lahore Stock Exchange (LSE), he said role of the management will be strengthened and regulatory functions will be segregated from commercial interests, according to statement issued by the SECP.
Published in The Express Tribune, October 27th, 2015.
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