The management of Karachi Stock Exchange (KSE) has decided to expel three of the suspended members of the exchange, it is learnt. Sources said the three KSE members namely Eastern Capital Limited, ClikTrade Limited and Capital One Equities Limited failed to payback KSE loan till the deadline of August 12.
The sources said the KSE management had, however, decided not to expel the other two members as one of them, Prudential Securities Limited, had managed to payback KSE loan, while the other member, MKA Securities, had not received any loan from the exchange. However, the issue of investors'' claims against them was yet to be settled. Earlier, the Securities and Exchange Commission of Pakistan (SECP) had suspended the registration of five KSE members on June 29 after complaints by investors.
Following the SECP''s decision, the KSE also suspended the trading rights of the said members to protect the interests of investors. Later, the names of the said suspended KSE members were put on Exit Control List (ECL) on the recommendation of the SECP as there were rumours that some of the suspended brokers were planning to leave the country without clearing obligations against them.
Beside the issue of investors'' claims, the issue of KSE loan against these members was also yet to be settled, sources said. Finally the suspended brokers were given a deadline of August 12 to pay back KSE loan, otherwise they would be expelled and their membership cards would be sold out.