KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has directed the Pakistan Stock Exchange (PSX) to fix the number of directors and hold the election of shareholder directors in accordance with requirements of Companies Act 2017.
“The SECP direction has been issued to ensure good governance and for the true representation of shareholders on the PSX board,” a press release by the apex regulator said on Friday.
The SECP reminded the PSX that the law requires that the board of a securities exchange will comprise a CEO, independent directors and shareholder directors. “The number of independent directors on the board shall not be less than the shareholder directors,” it said.
In accordance with the SECP’s direction, the newly elected shareholder directors along with the existing independent directors will nominate new independent directors.
The SECP concluded that the protection of minority investors remained the chief regulator’s priority area. As a result of the SECP’s decision, the representation of minority shareholders comprising the general public will also come into effect.
The process has to be completed by Feb 28, 2018.
Published in Dawn, December 30th, 2017
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