Daily Times

ISLAMABAD – The demutualisation committees of Karachi Stock Exchange (KSE), Lahore Stock Exchange (LSE) and Islamabad Stock Exchange (ISE) have agreed in principle to integrate the three stock exchanges to form one national stock exchange.

In this regard, a formal memorandum would be signed on August 27, in the presence of Federal Minister for Finance and Economic Affairs Senator Ishaq Dar, a statement of the Securities and Exchange Commission of Pakistan issued here said.

A joint meeting of the demutualisation committees of the three stock exchanges was held on Tuesday at the Securities and Exchange Commission of Pakistan in which it was agreed to form a national stock exchange to be called Pakistan Stock Exchange (PSE). The meeting discussed the way forward for Pakistan’s capital market, being mindful of the global trend towards consolidation and integration of stock exchanges.

There was a general agreement that in order to achieve the government’s vision of a fair, efficient and transparent market with one national stock exchange conforming to international standards, integration of the local bourses was to be pursued. Integration of the stock exchanges was expected to help reduce fragmentation of market and create a strong case for attracting strategic partnerships necessary for providing technological expertise and assistance.

According to the statement, it was agreed that for sustainable development of “our capital market and in the national interest, the three stock exchanges will enter into a memorandum of understanding that will subsequently be approved by their respective boards of directors and general body”.