ISLAMABAD, Dec 1: The Securities and Exchange Commission of Pakistan (SECP) here on Thursday clarified that it had not withdrawn the directives issued to the Karachi, Lahore and Islamabad stock exchanges on Tuesday regarding election of non- member directors as chairmen of the boards of these exchanges. “These directives are valid and remain in full force and effect. All news to the contrary appearing in the national electronic and print media are baseless and SECP categorically refutes the same” said an announcement issued by the commission.

It said the meeting between the representatives of the Karachi Stock Exchange (KSE) and the SECP, held in the SECP head office here on Wednesday had discussed developments taking place on the matter of demutualization of stock exchanges and KSE’s business plan in this regard; it had nothing to do with the directives.

The SECP did not discuss or give any indication to the KSE in the course of the meeting that the withdrawal of the directives would even be considered, it said.

The directives were issued in light of the recommendations of Expert Committee on Demutualization and Task Force to Review Stock Market Situation and in accordance with international best practices to minimize the possibility of conflict of interest on the exchanges and thereby to promote transparency and good governance.

“It is reiterated that a well governed, transparent exchange is not only in the interests of the investors but also for the future development of the market itself”, the statement said.

It said the SECP was fully empowered to issue such directives in light of the powers vested in the SECP under the Securities and Exchange of Pakistan Act, 1997, the Securities and Exchange Ordinance, 1969.

Further, there is no bar in the Companies Ordinance, 1984 or any other law, to the exchanges from complying with these directives.

It is pertinent to note that in its board meeting held in Islamabad here on Thursday, stock exchange had unanimously approved the amendment and called an extra ordinary general meeting on December 9 for formal approval.