KARACHI: The corporate regulator, Securities and Exchange Commission of Pakistan (SECP) has reversed its regulation against raising no. of shareholders on Pakistan Stock Exchange board.
The board will majorly be constituted by independent directors, reported Dawn.
The structure of the PSX board has been a major source of dispute between regulators and apex due to skepticism expressed by the stock exchange’s Chinese investors on the previous proposal to decrease independent directors.
In an ironic twist, the corporate regulator hasn’t uploaded this notification on its website and neither was the information shared by the commission.
But sources in SECP shared a letter was written to PSX’s Company Secretary, Muhammad Rafique Umer by Director SECP, Yasir Mansoor on January 26th, 2018.
The letter stated the commission had deliberated upon the comments given during public consultation period and decided to keep the rules unchanged.
Previously, SECP had approved the demand of stock brokers by raising representation of shareholders on PSX’s board.
This draft revision was done in Securities Exchange (Licensing and Operation) Regulations 2016, which permitted a decrease in composition of independent directors to one third on the PSX board, which was 50 percent
