Stakeholders want KSE, LSE and ISE integrated
KARACHI: Karachi Stock Exchange (KSE) held a general meeting of its shareholders to adopt a special resolution for approving the schemes of integration of KSE with Lahore Stock Exchange (LSE) and Islamabad Stock Exchange (ISE), and changing the name of KSE into “Pakistan Stock Exchange Limited”.
The meeting of shareholders was attended by over 34% of KSE shareholders in person or through proxy. Eight out of 11 directors on the KSE’s board also attended the meeting.
KSE Board Chairman Muneer Kamal chaired the meeting and described briefly about the background whereby the process of integration was undertaken as a result of a memorandum of understanding (MoU) entered into by the three stock exchanges on August 25.
Muneer Kamal explained that in view of consolidation of business of stock exchanges, all Trading Right Entitlement Certificates (TREC) holders of Lahore and Islamabad stock exchanges would be issued TREC of Pakistan Stock Exchange without any fee and they shall be treated at par with the existing TREC holders of KSE, by equally having direct access to KSE’s deep liquidity pool and vibrant trading platform.
The chairman emphasised that with cessation of licenses of LSE and ISE to function as stock exchanges, Pakistan Stock Exchange would emerge as the single national stock exchange of the country, serving investors in a seamless and efficient manner.
The shareholders raised certain questions, which were answered satisfactorily by the members of the board, de-mutualisation committee and the management.
The house then unanimously approved the special resolution, as placed before it, without any change.
De-mutualisation Committee member Firozuddin A Cassim, on behalf of the committee, appreciated the hard work and efforts put in by the entire board, management and SECP for the guidance and support extended throughout the process.
The shareholders wished growth and success for the envisioned Pakistan Stock Exchange that would unite and strengthen the securities industry and also accelerate the development of capital market in Pakistan.