Business Desk Karachi: The amalgamation of Karachi, Lahore, and Islamabad stock exchanges is going to become one entity of trade naming the Pakistan Stock Exchange (PSE)and will be starting working December 28, said Karachi Stock Exchange (KSE) Managing Director Nadeem Naqvi.
While addressing in a press briefing on Friday at the KSE, the PSE would officially be inaugurated in the second week of January by PM Nawaz Sharif.
Now, after this merger, the licences of both Lahore and Islamabad stock exchanges including their trading right entitlement certificates (TREC) holders will be dismissed. These brokers will turn into TREC holders of the PSE to increase the number of brokers on the bourse currently known as the KSE; however the TREC holders will not possess any shareholding in the PSE.
The next phase will see the assimilation of the stock market where PSE will sell more than 40% equity stake to a strategic investor, which will be followed by another 20% sale of shareholding to the common public. The bunch of 200 KSE brokers, originally possessing 100% shareholding in the bourse, will have the proceeds of the sale of shares. They will also retain the remaining 40% stake in the PSE.
As stated the SECP spokesperson, stock exchange directors are needed to reveal their shareholdings, including that of their dependents along with disclosing any gains made by the sale or purchase of any share at any given time along with submitting their dependents’ CDC activity report on a quarterly basis.