SECP and KSE agree on draft rules for bourses integration

KARACHI - Securities and Exchange Commission of Pakistan (SECP) and members of Karachi Stock Exchange’s Member’s committee on Demutualization reached to a consensus and agreed on a final draft of the “Stock Exchanges (Corporatisation, Demutualisation and Integration) Rules, 2008. They also decided to accelerate the process of demutualization to get the KSE corporatized and demutualized by Dec 31, 2008.It was decided in a meeting of SECP and KSE held on Wednesday to discuss the procedural matters of Demutualisation Rules 2008. The SECP team was led by its Chairman Razi-ur-Rehman Khan, whereas the KSE team included Adnan Afridi, Managing Director, Shehzad Chamdia, Chairman, Demutualization Committee and other members of the said Committee.Sources who attended the meeting said that procedural matters of the draft of demutualisation have been discussed in the meeting and hoped that it would take 10 to 12 days to receive the final approval of the draft from SECP.It may be noted here that the chairman of SECP Razi-ur-Rehman had told the media men and members of KSE would be demutualized in next three months, in this regard all three exchanges have been informed to submit their suggestions, he said this during the visit of Finance Minister Syed Naveed Qamar to the stock markets some days ago. While finance minister had said that demutualization draft was approved in finance bill and would be soon approved from the president.A press note issued by KSE on Thursday said that The draft “Stock Exchanges (Corporatisation, Demutualisation and Integration) Rules, 2008” forwarded by the SECP were discussed and the observations / comments submitted by the KSE were considered and agreed by the Commission. After the detailed deliberation, the SECP and KSE reached to a consensus and agreed on a final draft of the Rules. It was also agreed that the demutualization process be expedited in a way to get the KSE corporatized and demutualized by December 31, 2008.