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Demutualisation of stock exchanges to be completed in 4 months

Chairman Securities and Exchange Commission of Pakistan (SECP) Muhammad Ali announced that the stock exchanges would be corporatised and demutualised in four months. “The major advantage of demutualisation of stock exchanges is that the brokers would not have 100 per cent ownership rights. Once the process is complete, a certain percentage of shareholding would remain with the brokers. Whereas the general public and strategic investors would obtain shareholding of the stock exchanges, which would be turned into companies,” Ali said. “The status of the stock exchanges would be changed from limited by guarantee to the public limited company. The public limited companies themselves would be listed on the stock exchanges, and ultimately segregate ownership and trading rights,” he explained. He further said that an investment bank of international repute would be appointed for evaluation of the stock exchanges after demutualisation. He spoke of how demutualisation would enhance investor confidence,  “When general public will come into the stock exchanges, the confidence of the investors will further increase and values of the shares would show further improvement,” Ali said.

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