KSE card purchased for Rs 55 million at auction

One of the cards of two Karachi Stock Exchange (KSE) members, whose brokerage houses defaulted, is auctioned at Rs 55 million on Thursday.According to a director of board of exchange, MMM a commodity, which mainly operates in rice trading secured the card by offering the highest bid among the four bidders.KSE invited the bids from individuals and eligible corporate bodies, financial institutions/banks (local & foreign) couple of days back for sale of cards of Sikandr Ismail Bagsara and Ismail Abdul Shakoor, who defaulted on failure to honour their debt obligations.

The bids were invited after the KSE Board endorsed the Nov 6 decision of the National Clearing Company of Pakistan (NCCPL) which had declared Bagasra Securities (Pvt) Limited, and Ismail Abdul Shakoor Securities (Pvt.) Limited, both Corporate members of the KSE, as "defaulter" under regulations.According to the NCCPL, the final loss remaining unsettled by Bagasra stood at Rs 51.4 million as on the close of business on Nov 6. The final loss remaining unpaid by Shakoor at the end of the specified time amounted to Rs 5.4 million after the recovery of substantial sum of Rs 8.3 million through the selling out of retrieved shares.Sources said that the second card could also be auctioned in next two to three days and it could fetch more or less the same amount. The market participants also anticipated the amount in the range of Rs 50 to Rs 70 million.The value of membership card of the KSE also plunged with the steep decline in the stock market since April this year.

The value of the membership card also shoot up to over Rs 130 million in the heydays of the market and dropped massively with the current turmoil. Sources said that the default does not seems to be limited with these two members as more members are on the brink of this situation if the much-talked market stabilization was not activated soon. The total strength of KSE members is 200."The financial situation of five to six members is particularly precarious because they are badly trapped in CFS market and are unable to meet their obligations in the current situation," sources said.Meanwhile, the meeting between KSE board and SECP remained inconclusive on the decision of floor removal.

Comments

THK Associates (Private) Limited: Shares Registrar

THK Associates (Pvt) Limited was formed in 1989. The company is engaged in providing specialized services relating to the corporate sector and in particular acts as share transfer agent for a number of companies. THK Associates (Pvt) Limited is one of the leading service provider of Share Registrar, Transfer Agent, Balloters for IPO’s and Share Accounting Services and is managed and run by a set of professionals having indepth knowledge and expertise of organizing and managing diversified corporate activities including depository related Share Registrar activities. THK Associates (Pvt) Limited, previously an associate of KPMG Taseer Hadi & Co., has been restructured in terms of requirements of Clause XL of the Code of Corporate Governance and the shareholding of THK partners has been divested in the year 2004. Mr. Yunus Dawood, Chief Executive of DYL Motorcycle Limited, a shareholder and Director was appointed as Chairman of the Company in 2008. Mr. Javed Iqbal, former Chairman an

SECP initiates 86 show-cause proceedings against compamies

The SECP’s Enforcement Department— while enforcing compliance of corporate and allied laws— initiated 86 show-cause proceedings and concluded 54 proceedings against chief executives, directors and auditors of companies in February and March. While facilitating companies to strengthen their capital base, the department allowed three listed companies to issue shares by way of otherwise than right at a discount and at par. In order to strengthen the existing regime of Corporate Social Responsibility (CSR) reporting, the SECP has joined hands with the ICAP for the external assurances of the CSR reports. CSR reports assist organizations in understanding and communicating their vision of combining a company’s profitability with social responsibility and environmental care. Both the SECP and the ICAP have reaffirmed their commitment to developing a framework for external assurance in accordance with prominent international assurance standards, and within a mutually agreed time f

Dewan Motors launch electric cars in a glorious ceremony

By Abdul Qadir Qureshi (Pakistan News and Features Services) Way is paved for assembling and later gradual manufacturing of electric cars and bikes in Pakistan with the launching of electric cars by the Dewan Motors Limited (DML), a reputed name in the automobile sector, at a glorious launch ceremony at the Convention Centre of DHA Golf Club on June 4. The Chairman of Senate, Syed Yusuf Raza Gilani, also a former Prime Minister, was the guest of honour as hundreds of participants from various walks of life celebrated another remarkable achievement by Pakistan. Speaking on the occasion, he acknowledged and applauded the ground breaking initiative undertaken by the Yousuf Dewan Companies (YDC) in the automotive sector. “The establishment of a state-of-the-art vehicle assembly plant equipped with cutting-edge robotics technology, signifies the strength and capabilities of the company,” he remarked. He was confident that, based on its reputation and track record, the YDC will not o

Stocks Observer. com

Search This Blog