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January 25, 2008
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Friday
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Muharram 15, 1429
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SECP chief rules out relaxation to bourses: Demutalisation
By Our Staff Reporter
ISLAMABAD, Jan 24: Securities and Exchange Commission of Pakistan chairman Razi-ur-Rehman Khan has said that there will be no relaxation in time frame given in the Stock Exchanges (Demutualisation, Corporatisation and Integration) Ordinance 2007 for demutualisation of bourses.
He was addressing the board of directors of the Islamabad Stock Exchange (ISE) here on Thursday.
The chairman said that the long-awaited ordinance approved by the caretaker cabinet on Tuesday would be signed and promulgated by President Pervez Musharraf very soon. He said that all the three stock exchanges must comply with all the requirements of the ordinance for demutualization.
He emphasised that the SECP was not going to extend the time frame for complying the provisions of the ordinance by the exchanges.
ISE Managing Director Aftab Ahmad Ch welcomed the Securities and Exchange Commission of Pakistan chief and gave an outline about the progress made so far with regard to demutualisation and corporatisation of the exchange.
He assured that the ISE would complete the process in accordance with the provisions of the ordinance within the given time frame.
Mr Razi said that due to reforms agenda which had been implemented by the SECP in collaboration with the stock exchanges, Pakistan’s securities market was being ranked amongst the stock markets of the developed countries.
The ISE managing director also briefed Mr Razi about the future strategies of the exchange in the wake of demutualisation. He said the ISE would initially focus on making the local financial institutions its equity partners and a modest chunk of only 10-15 per cent equity would instead be offered to the strategic investors being the international stock exchanges/operators.
An official press release said, the chairman while agreeing to the proposal said that an exchange could only allocate capital to the tune of 40 per cent to financial institutions and within this limit every exchange was free to decide the shareholding composition with no financial institution getting more than five per cent equity in any exchange.
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