September 24, 2002	Tuesday	Rajab 16, 1423

ISLAMABAD, Sept 23: The Securities and Exchange Commission of Pakistan (SECP) has allowed the Meezan

Bank Limited (MBL) to award stock options to its employees under the Companies Ordinance, 1984, according to an official source.

The decision marks the enforcement for the first time in Pakistan of the Stock Options Scheme (ESOS) which is already in vogue in other countries.

In fact, Section 86(1) of the Ordinance was amended through the Finance Act 1999 to provide that a public company may reserve a certain percentage of further issue of capital for its employees under the ESOS approved by the SECP.

The objective of the scheme, said an SECP source, was to enhance the employees’ performance and inculcate in them long-term loyalty with the company.

The rules to enforce the provisions of Section 86(1) were notified by the Commission in May last year. Under these rules, the employees are given an opportunity to acquire ownership in the equity of the company.