SECP re-registers stock exchanges – Alfalah Securities Limited
Karachi, August 28, 2012 (PPI-OT): Securities and Exchange Commission of Pakistan (SECP) has issued certificates of re-registration to Karachi, Lahore and Islamabad stock exchanges under the Stock Exchanges (Corporatization, Demutualization and Integration) Act, 2012 to change their status from “companies limited by guarantees” to “public companies limited by shares”.
According to Alfalah Securities Limited, the stock exchanges will now operate as for-profit and as demutualized entities with distinct segregation of ownership rights from trading rights.
Upon receipt of the certificates of re-registration, the existing directors on the boards of the stock exchanges shall cease to hold office and be replaced by the new six directors nominated by the SECP and four broker directors nominated by each respective stock exchange. The next phase of the demutualization exercise will include the sale of shares of the stock exchanges to the strategic investors, general public and financial institutions.