SECP green-signals PSX to appoint Richard Morin as CEO

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) on Monday approved appointment of a Canadian Richard Morin as chief executive officer of Pakistan Stock Exchange (PSX) following the bourse’s key stake acquisition by a Chinese-led consortium last year. 

Sajid Gondal, a spokesman of SECP told The News PSX shortlisted Morin for appointment as its CEO after following due process as required under the Securities Exchanges (Licensing and Operations) Regulations 2017, and in terms of ‘Fit and Proper’ criteria. 

“The board of directors of PSX unanimously recommended appointment of Morin for approval of the SECP under the regulations, which was approved by the SECP subject to completion of formalities,” Gondal said.  In 2016, a Chinese-led consortium, including China Financial Futures Exchange Company Limited, Shanghai Stock Exchange and Shenzhen Stock Exchange, bought 40 percent strategic stake of PSX against $85 million.  

Sources said the board was considering three potential candidates for the bourse’s key post.   Names of Credit Suisse’s Farrukh Sabzwari and another top stock dealer Raza Rahim are also under consideration, a well-placed source said. 

The new appointment is aimed at to unveil new products to attract local as well as foreign investments. “A novel idea comes with a cost,” Ahsan Mehanti, managing director at Arif Habib Corporation said, referring to emoluments to be offered to the new chief. 

“Especially at a time when market volumes shrank one-third as compared to the last year, there is need of new products,” Mehanti said. “Morin has significant global experience and the market has great expectations for him.”

Morin co-founded Montreal-based investment manager Landry Morin Inc. He has also headed Stock Exchange of Mauritius. Morin has also been vice president of National Bank Securities. He got BSc in economics degree from the University of Montreal and an MBA degree from McGill University.

Analysts said there are always oppositions and favours on a key appointment. 

“But, important thing is that how the new head would overcome the critical challenges currently facing the stock market,” an analyst said, requesting anonymity. “The major issues are new products, information and technology and governance…so, he has to gear up his efforts to resolve these issues.”

Brokers said Morin’s performance would be gauged within six months. 

“The market is in need of new products and price discovery. So, the new head is expected to explore this frontier,” Zafar Moti, a senior broker remarked.