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03/09/2010  
 Headlines: Senate told Seven airports shut in country,     ISB: The Senate was informed Friday that seven airports in different cities have been closed due to suspension of PIA flights.     The PIA suspended the flights due to a daily loss of Rs19 million during last year.     Suprem Court orders arrest of Gilani’s ex-PRO,     ISB: SC has asked the FIA to arrest former media coordinator of the prime minister, Khurram Rasool.     Present him in the court on 24th January otherwise action would be taken against the Agency.     Khurram Rasool is accused of corruption of Rs530 million.     Musharraf denies delay in return,     LONDON/KARACHI: Former military ruler & chief of (APML) Pervez Musharraf has rejected reports about suspension of programme to return home.     he would be back in Pakistan according to the scheduled programme.     SBP injects Rs 242.5bn in market,     Trade thru dry port fetches Rs1bn tax,     India SC rejects army chief’s plea,     100 more engines by year-end: Bilour,
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 KSE, SECP cross swords



Issue of non-member director as head of KSE Board
Nawaz Ali
KARACHI: The run-in between the members of Karachi Stock Exchange and SECP doesn't seems to be a one-off as KSE members Tuesday spelled out their resolve to move on with the restructuring agenda despite the dissent showed by the Chairman apex regulator.
Members of Karachi Stock Exchange held a meeting at KSE Auditorium to consider the statement issued by SECP on Wednesday.
The meeting unanimously rejected the position taken by the SECP regarding its disapproval against the restructuring in the KSE Board.
The KSE whistleblowers expressed their determination to amend the Articles of the Exchange and resist any move against the proposal of members of KSE for restructuring of the KSE Board and reversal of the discriminatory requirement of the Chairman of the Board being elected from amongst the non-member directors. The members were of the view that non-member helming the affairs of KSE had exacerbated the trading business big time neglecting the stakeholders, thus culminated in a heavy decline in the index which had nearly bottomed out in the recent past.
The KSE members also held responsible the non-member Chairman for the complete vanishing of public investors and diminishing of volumes from the stock market referring the reason that he had kept KSE closed for three months in 2008. The members said that Apex Regulator failed to conduct any enquiry in this regard as to how over Rs two trillion of public investors had gone down the drain.
Members expressed their views that SECP also failed in a miserable manner to reform KSE as its efforts only ended making KSE as an extension to SECP while reforms were aimed to making it frontline regulator watched over by SECP. Hence any move to block the legal and democratic rights of the KSE members to reverse the failed reforms would be dealt forcefully, members said.
The members were of the view that the recent act of non-stakeholder Chairman of the KSE, ignoring the resolution of the Board approval for the introduction of leverage product is a glaring example of high-handedness of an individual over institutional legal decision. In view of above members have decided to amend the Articles to save the market from further disaster reversing the restriction on member directors to become the Chairman of the Exchange.