ISLAMABAD – The first Board of the demutualized-ISE met to consider various matters including election of chairman of the Board, consideration of post demutualization changes in the regulatory regime of the Exchange and constitution of different committees of the Board to deal with different matters.
The new Board includes Zahid Latif Khan, Mian Humayun Parvez, Mohammad Masud Ch and Asif Saeed Malik as elected directors whereas Muhammad Rashid Zahir, R.A. Chughtai, Umar Hayal Khan, Mr, Hussain Ahmed Ozgen, Malik Qamar Afzal and Chaudhry Mujeeb Ullah are nominee directors appointed by the SECP.
Mian Ayyaz Afzal, CEO is the eleventh director on the Board by virtue of his office. The Board unanimously elected Rashid Zahir as its Chairman for third time. Rashid Zahir has extensive executive/board level experience in investment and commercial banking. He served as CEO of Saudi Pak from Jan 1991 to Jan 2011 and during this stint, Saudi Pak acquired a commercial bank and a leasing company and set up an insurance company and a real estate development company.
He has served on the Boards of several listed companies in a fiduciary capacity.
He graduated from Government College, Lahore and obtained MBA degree from Institute of Business Administration, Karachi.
Rashid Zahir, has also been a director on the Board of ISE during
2001-2004, 2006, 2010 and 2011.
Consequent upon re-registration of the Islamabad Stock: Exchange, the
ISE is now a public company limited by shares with effect from August 27,
2012. Now the main task before the Exchange is to find a strategic investor for the sale of its 40% shares whereas 20% shares are to be issued to the general public.
It may be noted that the plan of demutualization of the stock exchanges was initiated by the Securities and Exchange Commission of Pakistan (SECP), back in 2004 under the capital market reforms with the support of Asian Development Bank to bring the stock markets in Pakistan at par with international stock exchanges.
The untiring efforts of the SECP and continuous support from the three bourses finally resulted in promulgation of Stock Exchanges (Corporatization, Demutualization and Integration) Act 2012 in May 2012 that enabled the ‘exchanges to be demutualized in terms of that Act.
Through demutualization, governance at the stock exchanges shall be further enhanced and will lead to independent, efficient, and transparent decision making in the interest of stakeholders, particularly the investors.
The stock markets shall fetch foreign investment through strategic investors whereas general public shall also be the shareholder of the Exchanges that will help to broaden the market base.
With the improved perception and availability to wider range of products and services; a demutualized ISE will attract more listings.
Through demutualization, transparency in the operations of the ISE shall be increased that will help improve its perception and enhance confidence of domestic and international investors.