ISLAMABAD, Dec 2: The Securities and Exchange Commission of Pakistan here on Friday said the directive it issued to the Lahore Stock Exchange on Tuesday was capable of immediate implementation without reference to the general body of the LSE.
Under Regulation 7.04 of the General Rules and Regulations of the Lahore Stock Exchange, the LSE was empowered to elect the chairman of its board from amongst the member directors.
On November 29, the SECP had directed the LSE to amend Regulation 7.04, to allow only non-member directors of the LSE to be elected to the board of the exchange.
“The SECP is fully empowered under section 34(4) of the Securities and Exchange Ordinance (SEO) 1969 to direct a stock exchange to make any regulation, or to amend or rescind any regulation already made, within such period as it may specify in this behalf,” the announcement said.
It said the approval of this directive might be accorded by the LSE in a meeting of its Board of Directors (in pursuance of Article 79 of its Articles of Association of the LSE) without reference to the general body in a general meeting.
The Islamabad Stock Exchange (ISE) in a meeting of its Board of Directors held here on Thursday unanimously approved the directive of the SECP and has referred the matter for approval to its general body, in an extraordinary general meeting proposed to be held on December 9.
