Bourses agree to integrate into one

ISLAMABAD: The demutualisation committees of Karachi, Lahore and Islamabad stock markets have agreed, in principle, to integrate the three bourses and form one national stock exchange, a statement said.
A formal MoU will be signed on Thursday (August 27), in the presence of Federal Finance Minister Ishaq Dar.
A joint meeting of the demutualisation committees of the three stock exchanges was held on Tuesday at the Securities and Exchange Commission of Pakistan (SECP) 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 the stock exchanges.
There was an 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 local bourses was to be pursued.
Integration of the stock exchanges is expected to help reduce fragmentation of the market and create a strong case for attracting strategic partnerships necessary for providing technological expertise and assistance, it said.
It was agreed that for sustainable development of the capital market and in the national interest, the three stock exchanges will sign an MoU that will subsequently be approved by their respective boards of directors and general body.