The Securities and Exchange Commission of Pakistan has re-nominated/re-appointed Mr Muneer Kamal, Shazad G. Dada, Asif Qadir and Abdul Qadir Memon on the Board of the Karachi Stock Exchange (KSE) for the 2012 term. They had also served on the KSE Board last year as independent directors and their appointment can be seen as a fair balance of the requisite qualifications and skills on the board. Mr Muneer Kamal, presently vice-chairman of the KASB Bank Limited, has over 28 years of extensive experience of the banking and financial sector during which he has served locally and internationally on senior positions at various renowned banks. Mr Shazad Dada, CEO, Barclays Bank PLC, Pakistan, is a seasoned banker and a prominent capital market professional. He has over 20 years of major national and international financial markets’ experience. Mr Asif Qadir, president and CEO, Engro Polymer and Chemicals Limited, has over 30 years of management and marketing experie...

finan c ial valu a tions of P SO i s fut i le… Pakistan’s biggest petroleum handle r , Pakistan State Oil ( P S O ) is on the verge of financial collapse since its o u t standi n g dues from various ‘ e ner g y sector’ e ntities has reach e d to the extent of Rs 1 80 b n (whi c h is highest in 4‐y e ars). It seems t hat no bailing out is for t h c o ming from m i nistry of finan c e (M o F). A c tual cash flows o f t he entity have gone n e gative due t o incidence of more short term loans t o keep the dai l y operations afloat. It is imperative that the calculation o f DCF value o f such an entity may be a futile exercise and thus ta n t a mount to mislead investors. Liabiliti e s swe l ling… Wh e n PS O is not receiving du e p a yments, it is hard for the i r treasury to a r range paym e nts for r efineries. Ri g ht now PS O has t o p a y R s 1 7 2 b n of man y companies th a t also include international pri n cip...

Senior SECP officials, headed by the SECP Chairman, and Chairman, Karachi Stock Exchange met with the Board of Directors, Management and Members of the Karachi Stock Exchange on Wednesday. The meeting discussed various important market related matters including the proposed new broker registration regime. The SECP briefed the participants on the various significant steps taken by it to ensure sustainability and providing confidence to the market participants and proposals that were under discussions. It was emphasized that all reform measures that have been introduced in the past and currently being considered were in close coordination and consultation with the relevant stakeholders and are designed to improve trading volumes and enhancing retail participation in the stock market. The participants were briefed on the SECP’s strategic objectives for the coming years. The key objectives highlighted include: (i)Structural and regulatory reforms for the market;...

The SECP has developed and approved draft Thermal Energy (Cost Accounting Records) Order, 2011, for the company engaged in production, processing and generation of thermal energy/power. The companies engaged in generation of thermal energy are required to maintain such cost accounting records, including all particulars relating to utilization of material, labour or other inputs of items of cost as would be necessary.. The aforesaid draft will be issued in exercise of powers conferred by clause (e) of sub-section (1) of section 230 read with section 246 of the Companies Ordinance, 1984, and section 40 B of the Securities and Exchange Commission of Pakistan Act, 1997. Cost audit can only be an effective regulatory tool when the cost records are properly prepared and cost audit reports are made on a uniform format for a particular sector. In order to bring uniformity to the cost records and cost audit reports, the SECP requested the ICMAP to develop guidelines  for  ...

The Karachi Stock Exchange (KSE) 100-share index lost value in November 2011, albeit with a marginal decline of 2.8 percent on monthly basis, but the value erosion doubled in dollar terms (5.5 percent on monthly basis) during the month due to the rupee depreciation of 2.6 percent against the greenback.   Continuing with still high volatility marked with one of the lowest volumes years so far, Pakistan’s equities headed southwards especially last week amid severe noise not only on home’s political canvas but also on the latest event of a ‘friendly fire’ from the so-called ally, USA, of the country, killing a bunch of military personnel of the latter.  Following such unprovoked strike, the government responded with seize on NATO supplies while ordered the USA out of the airbase at Shamsi. This joggled investors at both equities and forex markets resulting in a speedy drainage in their respective values. In addition, fear of the commencement of a random audit by the ...

 In order to ensure the provision of accurate and timely information relating to performance and dynamics of capital market to various stakeholders, the SECP has developed various databases, which include a wide range of information relating to equity and corporate debt markets of the country. The databases include information regarding equity securities for the time period ranging from as earlier as 1992 and relates to public offerings and issue of shares. It further contains valuable information relating to debt instruments and securities including listed and privately-placed term finance certificates, commercial papers, sukuk and securitized structure debt instruments. The databases are further augmented by the details of securities issued outside Pakistan including depository receipts. The basic purpose of these databases is to increase the awareness of the market participants and general investors regarding the capital issues activity. This would also assist in cond...

ISLAMABAD, November 3: In recent past it was observed that meetings of boards of directors of listed companies were being extensively held abroad, even at places that were unrelated to concerned companies’ business activity or geographical location of their shareholders. This undesirable practice on part of directors that owe a fiduciary duty towards the company was resulting in undue costs for the listed companies as well as their minority shareholders with no benefit thereof. In order to check such detrimental trend the Commission has, while taking serious note of this practice and in exercise of its powers, linked the number of board meetings that a listed company may hold abroad with the proportionate participation of foreign directors on its board/equity. Accordingly, it has been directed that all listed companies incorporated in Pakistan having foreign equity participation, if required, can hold board meetings abroad, in any one financial year, as per thresholds pre...