The board's committee of the Karachi Stock Exchange (KSE) has decided to reject all bids and issue new schedule of invitation of bids for the membership rights of the same seat. In a notice, KSE announced to re-invite bids for purchase of membership rights (Bids) from the individuals and eligible corporate bodies, financial institutions/banks (local and foreign), subject to the terms and conditions and the membership criteria laid down for the purpose.
According to the KSE notice, some significant features of the criteria are given below: FOR CORPORATE BODIES: a) Be a company or statutory corporation or a body corporate registered under Companies Ordinance 1984 with a minimum issued and paid-up capital of Rs 20.0 million. b) The nominee director representing the corporate entity must be a citizen of Pakistan. c) At least two directors, including the chief executive officer, must possess minimum qualification of graduation.
FOR INDIVIDUALS: a) He should be not less than 21 years of age on the date of application. b) Must be a citizen of Pakistan. C) Should be financially sound and income tax assessee. d) Should be a graduate and have sufficient knowledge of capital market business.
The applicants will have to fulfil the membership criteria and/or the requirements for the membership as laid down under the Regulations and Articles of Association of the exchange. Interested parties may send their bids along with 10 percent advance payment in the form of pay order against the amount offered. The entire amount to be paid against the bid shall be treated as "non-refundable contribution."
The bids may be sent under sealed envelope marked as "Bid for Membership Right" addressed to the managing director of the exchange latest by Thursday, April 30, 2009 up to 5:00 pm along with a pay order for advance payment of 10 percent against the amount offered and drawn in favour of Karachi Stock Exchange (Guarantee) Limited.
In case of non-acceptance of the offer, such amount would be refunded. The applicants selected for the membership will have to pay the balance amount of their bid within seven working days time from the date of demand by the exchange, failing which the advance payment will be forfeited by the exchange.