ISE and LSE merger likely by October-end; C&SC team briefed on bourses working

The Chairman of Islamabad Stock Exchange (ISE), Abdul Waheed January, has said that merger of Islamabad Stock Exchange (ISE) and Lahore Stock Exchange (LSE) is likely to take place by the end of October, 2005. Addressing the officers undergoing course at the Command and Staff College, Quetta, here on Wednesday, he said that both exchanges are trying their level best to go for merger as per schedule approved by the Securities and Exchange Commission of Pakistan (SECP).
During the information session, Waris Niazi, associate manager investor relations, ISE, gave a detailed presentation to the delegation on buying and selling of shares, index composition and working of the bourses.
The officers asked various questions about working of the capital market, stocks business and listed companies.
ISE Chairman told the officers that ISE and LSE have finalised all necessary arrangements for the merger and de-mutualisation of the exchanges. Legal advisers and financial advisers have been hired, and documentation has been completed. The business plan of merger has been given final shape and progress is being regularly reported to SECP.
He said that the board of directors of ISE has recently approved formation of a new stock exchange, after merger with LSE.
Jan informed the officers that investors should be very careful in making investment in any particular share. The financial position of the company and other data should be examined thoroughly before selecting any scrip.
Responding to a question, he said that circuit-breakers are necessary in the stock market to avoid any crash-like situation. The prices of shares are locked after a certain fall, or rise, to save the investment of the genuine and small investors.
Jan said that the government and SECP have jointly worked hard to bring in the capital market reforms during the last five years. The reforms have shown remarkable results "and we have to look forward in view of international changes".
He said that ISE is also endeavouring to expand the capital market outreach in the length and breadth of the country. The ISE has acquired a most modern trading system, which has the facility to access the remote areas through internet. "Our remote trading terminals are functioning quite successfully across the country. ISE is also assessing the feasibility to open more trading floors in other cities like Abbottabad, Mardan, Kharian, Jehlum, Mirpur and Muzzafarabad."
CBR Chairman also briefed the officers about technical aspects of the working of the bourses.
Later, Jan presented shields to the participants of the ''information session''. The delegation also visited different brokerage houses to see the working of the market.