 |
| |
WEEKLY
SECTIONS |
 |
|
 |
| CCP orders KSE to initiate unified trading with LSE, ISE |
|
|
|
Tuesday, June 02, 2009
By our correspondent
ISLAMABAD: The Competition Commission of Pakistan (CCP) on Monday ordered the Karachi Stock Exchange (KSE) to initiate a unified trading platform with Lahore and Islamabad bourses.
“Refusal on the part of KSE cannot continue,” read the CCP order in KSE’s violation of Section 3 of the Competition Ordinance 2007.
The CCP’s announcement issued Monday states the KSE shall enter into a Unified Trading System (UTS) between Lahore Stock Exchange (LSE) and Islamabad Stock Exchange (ISE) in line with the international securities market that has moved towards a geographically neutral market linked in cyberspace.
This shall eliminate the present distortion of competition, and ensure availability of and access to the best price of commonly listed securities to all investors in order to restore competition in the market.
In the event of non-compliance, KSE will be liable to pay a penalty of Rs50 million at the end of the six-month grace period and thereafter an additional penalty of Rs250,000 per day if non-compliance continues.
The commercial terms for the arrangement must be agreed upon between the parties within two months of the date of the order and it shall be the responsibility of KSE to ensure compliance within those time periods.
The UTS benefits all the players in the securities market as investors now have a common platform - hence best price can be made available and greater transparency can be ensured in the market. Furthermore, the present un-regulated trading of ISE and LSE investors on KSE will be eliminated. Thus, all three Exchanges will compete on the basis of comparative advantage and quality of their services. A three member bench of the Commission comprising of Khalid Aziz Mirza (Chairman), Maleeha Mimi Bangash (Member) and Dr. Joseph Wilson (Member) issued the order.
|
|
|
| Back
| Send
this story to Friend | Print
Version |
|
|
|
ISSN 1563-9479 
