The Lahore Stock Exchange (LSE) has announced that it is auctioning the Mehdi Securities' membership card after being found guilty of defaulting. The auction will take place on Friday at 4 pm in the exchange's auditorium. The LSE has fixed Rs 32.5 million as reserve price of the membership rights.
The Medhi Securities had defaulted to its investors, and told them to file claims to the LSE management early this month. The terms and condition, announced by the LSE, said only the members of the exchange would be eligible to participate in bidding, either personally or through an authorised person, having authority to take part in bidding.
Candidates will need to pay 20 percent of the final bidding price as earnest money after the close of the bidding either in the shape of cash or cheque. The remaining 80 percent of the accepted amount will be payable in 10 working days. If the candidate fails to do so, the deal will be considered cancelled. The bid amount, already received, will be forfeited in favour of the exchange.
Bidders need to meet a criterion provided under the LSE's articles, rules and regulations to become a member. The auction committee may accept or reject any bid without assigning any reason whatsoever in its sole discretion.