KARACHI, March 10: The Karachi Stock Exchange has invited bids for purchase of membership rights/seats.

Individuals and corporate bodies, financial institutions/banks (local & foreign) are eligible to bid, an announcement by the Exchange said.

It is presumed that at least three cards were confiscated by the Exchange from the defaulting/suspended members following the crash of 2008.

One was sold out, while the Exchange is still holding on to the two others, for want of better bargain. The offers received on previous bids were rejected on being too low.

The Exchange has been emboldened by the turnaround of the stock market in 2012, prompting it to put up the cards once again on the auction block. Some members speculate that bids between Rs40 to 50 million may be seen; representing premium ofaround Rs10 million over the price that the membership fetched before the current rally began.

Until the long held up demutualisation takes place, the KSE would keep up with its 200-member strong fraternity.

The KSE notified that the last date for submitting the bids is March 19. Bidders are required to draw up and submit with the bids, pay-orders for advance payment of 10 per cent against amount offered.

In case of non-acceptance of the offer, such amount would be refunded.

Applicants selected for the membership would have to pay the balance amount of their bid within five working days from the demand by the Exchange, failing which the advance payment would be forfeited by the Exchange.