KARACHI, Aug 30: The first meeting of the newly-constituted Board of demutualised Karachi Stock Exchange Limited was held on Thursday at which Muneer Kamal was re-elected chairman of the board.

A press release issued by the KSE stated that as a result of completion of process of demutualisation of stock exchanges, the KSE stood corporatised and demutualised as a public company limited by shares under the name of 'Karachi Stock Exchange Limited’, with effect from August 27, 2012 after issuance of the certificate of re-registration by the Securities and Exchange Commission of Pakistan, in terms of the provisions of Stock Exchanges (Corporatisation, Demutualisation and Integration) Act, 2012 (ACT).

The KSE statement said that the KSE would now operate as demutualised entity, thereby ensuring segregation of ownership rights from trading rights.

“This conversion of the stock exchanges reflects a significant transformation of the Pakistan Capital Market and marks the successful completion of corporatisation process under the act which was promulgated on May 7, 2012,” the KSE said.

It stated that in consequence of the above, the directors existing on the above date on the board of the KSE ceased to hold office and were replaced by the first directors, i.e., six directors nominated by the SECP and four nominated by KSE representing the initial shareholders of KSE in terms of the Act.

Nadeem Naqvi, Managing Director, KSE, by virtue of his office is also a part of the board.

Under the Act, within 30 days of the date of demutualisation, KSE shall elect four directors to replace the directors nominated earlier by KSE. The chairman of the KSE board shall be from amongst the directors who do not represent the TRE Certificate Holders.

In the meeting on Thursday, the Board observed that it was a significant occasion in the history of KSE and hoped that the change bodes well for Pakistan’s economy, in general, and the capital markets, in particular. The board was confident that through demutualisation, not only the governance at the KSE would be further enhanced and would lead to independent, efficient and transparent decision making in the interest of all stakeholders, it would enhance confidence of domestic and overseas investors.

Our reporter adds from Lahore: The Lahore Stock Exchange has been “corporatised and demutualised as a public company limited by shares, says an LSE announcement on Thursday. The announcement said the Securities and Exchange Commission of Pakistan has issued a “certificate of re-registration to the LSE on Wednesday to change its status from a company limited by guarantee to a public company limited by shares.

The corporatisation of the exchange will not create a new legal entity or prejudice or affect its identity or continuity, the announcement said.