LAHORE, Aug 28: The Lahore Stock Exchange is waiting for the outcome of the negotiations between the Karachi Stock Exchange and the Securities & Exchange Commission of Pakistan on the latter’s directive to the country’s bourses to restructure boards for reducing the role and control of their members in the management.

The SECP has directed the bourses to amend their articles of association to restructure their boards by reducing the total number of the directors to eight — four elected and as many outside directors to be named by the SECP. The managing director of each exchange would be ex-officio member of the board.

To further reduce the role of the members of the bourses in the management of the exchanges, the board will elect its chairman from among the outside members. The office of vice- chairman will be done away with. While the changes will become effective from the start of next year, the bourses have been asked to incorporate the changes by September 15 to bring more transparency in their working and restore the investors confidence in the capital markets.

“We’re having an internal debate on the SECP directive whose results are quite encouraging. Some members have strongly supported the SECP directions. Others say this is too much too soon. The latter want the changes to be made gradually,” LSE managing director Samir Ahmad told Dawn here on Wednesday.

Ahmad said: “Everyone tends to resist changes.” However, he added, the people adapt themselves to the changes once they see their benefits accruing to them.

He said the LSE board of directors would meet in a few days to discuss the SECP directive and take a decision on it.

According to an LSE member, most of his colleagues were opposed to the proposed changes. “We believe that if the proposed changes are implemented, it will take away all powers and control on the affairs of the exchange from us. We will just be rendered users of the exchange,” he said.