KARACHI, July 1: The Karachi Stock Exchange has decided to reduce the exchange charges (LAGA) in ready market (T+3) from Rs3.75 for every Rs100,000 to Rs3.57 for every Rs100,000.
The decision was taken in the meeting of the board held on June 15, 2004 and it would be effective from July 1, 2004, KSE MD Moin Fudda announced on Thursday. He said that this reduction in the exchange charges equivalent to 5 per cent of the existing charges, i.e. Re0.18 for every Rs100,000 would provide relief to the members as well as to the ultimate investors following assumption of National Clearing and Settlement Function by NCCPL and its charges.
Voluntary delisting of companies: In a separate statement, the KSE stated that the voluntary de-listing committee of the exchange in its meeting held on June 29, 2004 considered the applications of buy-back of shares by the sponsors and subsequent delisting of those companies, under the relevant listing regulations of the exchange.
Efforts were made to arrive at a mutually agreed fair buy-back price, between sponsors and the exchange, to compensate the minority shareholders. It included the following companies:
(1) Tritex Cotton Mills Limited: The minimum buy-back price was fixed at Rs25 per share against Rs17.25 per share, offered by the sponsors. (2) Zaman Textile Mills Limited: The buy-back price was negotiated at Rs65 per share as against Rs45.05 per share, earlier offered by the sponsors.
On satisfactory completion of buy-back process and subsequent formalities thereof under the relevant regulations of the exchange, these companies would be de-listed.
In order to facilitate those shareholders who might not be able to lodge their shares during the initial buy-back period, it would be binding on the sponsors of the de-listed companies to buy-back the shares at the prices fixed by the exchange for a further period of one year.
