After demutualization of Karachi Stock Exchange Limited (KSEL), when 200 members became brokers/shareholders, they have made Karachi Stock Brokers Association (KSBA), it was learnt on Friday. A senior stock broker Yaseen Lakhani and another senior person Bisharatullah Khan have been elected president and secretary general of the KSBA, respectively.
The managing committee of the KSBA consisted of 10 members (five from President to Treasurer and five others as members). The managing committee would rule the association for a year only. The first meeting of the association was held on February 18, this year in which the body was elected.
In the light of demutualization, the 40 percent shares of KSEL had been allotted to the existing 200 members. The shares had been transferred in their accounts, while the remaining 60 percent shares had been deposited in the blocked accounts.
The 200 former members had also been granted the rights for trading in de-mutualised stock exchange.
Both houses of the parliament passed "Stock Exchanges (corporatisation, Demutualization and Integration) Act, 2012 in a joint sitting held in March 2012, while then president, Asif Ali Zardari, had signed the Bill in May the same year.
"The association has been made as a platform where issues faced by brokers would be discussed and solutions would be found", said Shahzad Chamdia, one of the members of the managing committee.
The association has been registered under Section 42 of Companies Ordinance 1984, office has been established at the KSEL building and all 200 brokers have been asked to submit Rs25,000 (each) fund for the initial activities.
Another member told Business Recorder that the inauguration ceremony of the association's office would be held soon. Finance Minister Ishaq Dar would be invited as chief guest in the event.
Dawood Jan Mohammad, Zafar Moti, Mohammad Suhail and others welcomed the new body, saying that the association would work for the rights of brokers and would play its positive role for the trade enhancement at KSEL as well.