1. Introduction
Lahore Stock Exchange (LSE) is a fully electronic and completely automated stock exchange of
Pakistan. LSE was the second stock exchange to be licensed in Pakistan during 1971. Today,
LSE is the only domestic exchange to have more than one trading floors and is also the only
exchange in the region to have established a unified order book with another domestic stock
exchange in the country.
Activities at LSE have increased significantly in all operational areas since its inception. A
number of significant initiatives have been taken to improve the regulatory regime and the
trading environment for the benefit of Institutional Investors as well as listed companies. LSE
has successfully met various challenges and has now emerged, fully geared and positioned to
aggressively compete with its fellow Exchanges, contributing towards the growth of Capital
Markets in Pakistan.
Overview
Vision Statement
“ To develop ourselves into a dynamic and prominent multi product trading place, a well
respected corporate entity and a valued contributor to the economy. ”
Our vision statement describes the top ambition of our company in which the focus has been on
three fundamental aspects of our business – how we want to position our trading market; how we
would want to bring respectability to us as a corporate citizen; and how a well functioning and a
well regulated market can play its expected role to our economy – providing a fair and
transparent price discovery mechanism, enabling the corporations to raise capital in an effortless
manner, and then regulating these companies in an effective manner. Thus our vision statement
captures all the elements which are fundamental to our unique positioning as a market.
Mission Statement
“ To deliver sustainable value and offer best possible satisfaction to all stakeholders
associated with our Company. ”
Our Mission statement aims to capture the objective of sustainable value creation for our
stakeholders and goes beyond that by underlining that we would also aim to provide the best
possible satisfaction to all our stakeholders such as the government/regulatory agencies, the
investors, the members and the financial services community. The mission is connected with the
vision because if we are able to create and deliver value on consistent basis and if we succeed in
satisfying all our stakeholders then we would become known for providing a better marketplace,
and a successful corporate entity which takes care of all our stakeholders.
2. Core Values
1. To promote the values of fairness, justice and respect for our investors in every aspect of
the functioning of our markets;
2. To establish a culture of responsiveness, excellent customer services and utmost courtesy
to our stakeholders;
3. To inculcate the sense of accountability, professionalism, teamwork and mutual trust in
our human capital;
4. To always work for sustainable improvement and continuous innovations in our work
methods and products.
The core values have been developed to reflect the basic principles that would, going forward,
guide our interactions with every stakeholder of the organization. The values identified above
would assist in the establishing the foundation of a progressive corporate culture at the exchange
and ensure the credibility of our organization in the eyes of the stakeholders. The consistent
application of these core values will also equip the exchange with the ability to reach its full
potential in developing its human capital and to react and adapt to changing circumstances
thereby optimizing long-term success.
History & Milestones
Introduction
The Lahore Stock Exchange was incorporated as a company Limited by Guarantee under the
Companies Act 1913 on 5th October, 1970. In the first General meeting of the Board of
Directors held on the same day, it was decided that the Exchange will commence its working by
December 1970. It was the third Exchange in the country after Karachi and Dacca. The 1st
Registered office of Lahore Stock Exchange (G) Limited was located at 17-Bank Square,
Lahore.
The purpose of establishing the Exchange was that the up-country investors with predominant
middle class should have new avenues for investment and lay special emphasis on small and
medium industries. The largest number of medium industries and business houses were located
in Punjab; therefore a large number of entrepreneurs with small industries in Punjab wished to
build their industries broad based by converting them into public limited companies. Large
agricultural wealth was also available to the people of the Punjab who constituted 62% of West
Pakistan’s population and that wealth had to be geared for investment.
The institution was established to facilitate the investors of Punjab and Northern areas by
providing them an access to the Capital Market and enable them to take part in the progress of
the Corporate Sector of the country. Ever since, the institution has served the cause of investing
in small and large numbers, also providing the services and market place not only in Lahore but
also beyond the city’s boundaries.
3. 1970
Year of Inception
The first President Mr. Naseer A. Shaikh and Vice President Mr. Nisar Ahmad were
elected on October 15th 1970.
Due to business pre-occupation in Karachi, Mr. Nisar Ahmad resigned from Vice-
presidency; therefore, Mr. Rafique Saigol was elected in his place.
1971
On May 2nd, 1971, LSE Board of Directors selected 73 applicants out of 283 to become
LSE Members along with 10 original signatories to the Articles of Association.
The Board of Directors acting under Article 21 (c) co-opted four (4) new members as
Directors:
Mr. Syed Rashad Hussain
Mr. Mohammad Swaleh Manior (Director-KSE)
Mr. Hamid Ahmad
Mr. Mohammad Iqbal
The Rules and Regulations drafted by the Board were approved by Securities &
Exchange Authority of Pakistan on March 27th, 1971
The inauguration ceremony of the Exchange was performed by Governor Punjab Lt. Gen.
M. Attique-ur-Rehman on May 11th, 1971, the day on which future trading in shares and
bonus vouchers commenced at Lahore Stock Exchange.
Habib Bank Limited was appointed as a sole banker to the Exchange.
1972
The events from March 1971 marking the political crisis followed by the Indo-Pak war
and fall of Dacca, adversely affected the Stock Exchange Business.
The Government brought drastic changes by abolishing bonus voucher scheme and
devaluating the currency
The Board appointed United Bank Limited as the second banker to the Exchange
The first Library of the Exchange was set up to facilitate the investors.
1973
Keeping in view the difficulties faced by the members’ and investors’ in getting the
current rate securities listed on KSE, a telex line was installed to link both Exchanges
A major initiative taken by the Board was the constitution of following committees:
4. Taxation and Fiscal Committee
Rules and Regulations Committee
Floor and Rate Committee
Arbitration Committee
Defaulters Committee
1974
The budget of the year 1974 was termed as the First Investment Oriented Budget, in
which the incentives provided were tax exemption on dividend income, tax credit scheme
and exemption of capital gains on securities for consequent two years
1975
International recession coupled with the government policy of highly attractive saving
scheme retarded the pace of development of the Exchange
LSE started broadcasting of its news bulletin through television and National Press
including price variations together with brief market summary
1976
Various economic factors affected the companies listed on the Exchange
Attractive tax free yield offered by the Saving Schemes and banks as compared to the
low return from the Exchange deteriorated the market condition
1977
The trading volume showed a five-fold increase due to the strengthening measures taken
by the Martial Law Regime
The measures adopted were the denationalization, demarcation of public and private
sectors, reduction in taxation and excise duty, fixation of production target etc
The tax on bonus shares was abolished by the present regime
1978
The Exchange performed steadily due to the steps promulgated to promote the industrial
investments in the private sectors, majorly mentioning the free industrial zones in
Karachi and Lahore and the capital gain tax exemptions.
1979
The measures announced by the Government started bearing fruits which was reflected
by the growing volume of industrial sanctions and the buoyancy in stock market.
1980
5. For the first time, telephone lines were installed in the Exchange
The Exchange extended its cooperation to implement the spirit of Zakat and Usher under
the Ordinance 1980.
1981
The allotted plot for the new Lahore Stock Exchange site was handed over by Maj. Gen.
(Retd) M. H. Ansari, Director-General (Lahore Development Authority).
The office of the Exchange was provided with the facility of inter-communication.
1982
Layout for the new Lahore Stock Exchange building was finalized after extensive
analysis of various designs.
M/s. F. J. Whyte Group (Pakistan) was adjudged the best of all, and selected for the
prestigious LSE building to be built on 19-Khayaban-e-Awan-e-Iqbal.
1983
A permanent building committee was set up which started the day to day work on the
building project from the scratch.
Mian Tajammal Hussain was presented a LSE Crest for his brilliant leadership and vital
role in the early years of the Exchange. He served Lahore Stock Exchange as President
for six (6) years and during his tenure the exchange’s growth and image enhanced
vigorously.
1984
The Trading activity throughout the year was very active and turnover increased
manifold.
1983-84 was by every means a Landmark year as the Stock Exchange reached its record
levels in turnover of shares, Price Index, Market Capitalization and Capital Formulation.
The major factor behind the performance was the Sixth, 5 Year plan (1983-88) and the
priority accorded to the private sector investment in various development strategies.
16 new companies with paid-up capital of Rs. 534.20 Million were listed on the
Exchange.
The Govt. took positive initiatives including a major step towards industrialization, where
industries with an investment up to Rs. 300 million were allowed to be set without any
prior permission.
First time since the inception of the Exchange, initiated monthly newsletter was
published. Due to this letter, co-ordination amongst members and administration had
been improved.
6. LSE represented on the following advisory committees of the Govt.
Finance Division
Export Promotion Committee on Fiscal and Finance
Commissioner Income Tax
1985
The market showed a reverse and reflected a downward tempo due to geo-political
situation, lesser profits of listed companies, resulting from over shutdowns, or because of
strong dollar and soaring prices of imported raw materials
The world economy during the year 1984-85 had started to emerge from the longest
recession which continued for five years and put great strain on international trade and
world financial systems resulting in an increase in real interest rate and high trade
barriers
The government adopted many measures for the Islamisation of the economy by
introducing Musharika, equity participation, PTC’s and Mudaraba Certificates
Reliefs and concessions were announced for the investors and corporate sector
The ceiling of income tax was enhanced from RS.18,000/- to 24, 000/-
The Gift Tax was abolished
The slabs of income tax was reduced from 9 to 5
Pension was exempted from income tax
A commission for de-regulation was announced
A National Taxation Reforms Commission was announced
1986
The Exchange showed an increase of 84% shares turnover during the year
Even with the problem of balance of payments and upsurge of US dollar , the market’s
volume transaction and indices reflected a stable trend
The first meeting of the coordination committee was held on August 13th , 1986 and the
following matters were resolved
Computer/telecommunication link-age between Karachi and Lahore Stock
Exchanges
Simultaneous listing and delisting of companies on both Stock Exchanges
Uniformity of rules and regulations and coordination of matters of mutual
interests
Mr. Jamil Ahmad was selected as the First Permanent Secretary to the Board.
7. 1987
The Radio Pakistan Lahore started to announce the selected daily closing rate quotations
from April 10th, 1987
In order to boost the capital market in the province of Punjab, the then Corporate Law
Authority (CLA) imposed condition that companies would be listed at both LSE and KSE
simultaneously. However this condition was removed in July 1991.
1988
To list the disinvestment industrial units on the stock exchanges, a Disinvestment
Authority was formed, which planned to offer 10% shares of PIA and 20% shares of
nationalized banks to the public along with disinvestment in 14 industrial units
Three members of the Lahore Stock Exchange were nominated on Advisory Committee
of the Authority.
An important decision taken during the year was to move out the commercial activities
from the Budget. WAPDA and OGDC were required to raise resources for their
commercially viable operations directly from the market; rather than Govt. to borrow on
their behalf
During the year under review, the excess of income over expenditure increased by
189.48%.
Three members of the Exchange were appointed on the National Disinvestment Authority
(NDA).
The building committee decided upon the modalities of allocating rooms in the New LSE
building and members were offered space on a long lease of 99 years @ Rs. 300/- per
sq.ft
Members were requested to contact practicing firms of Chartered Accountants for their
accounts audit as per the requirements of SEAP Rules 1971
1989
A dedicated line was set up between Karachi and Lahore Stock Exchange which enabled
the transfer of voice and data quickly and accurately.
A fax machine was installed in the Exchange for the use of incoming and outgoing
messages.
The board of Directors of Lahore Stock Exchange decided to award 100 scholarships of
Rs. 200 each, for one year to the poor and needy students.
The Members Group insurance Scheme was increased from Rs. 1 Lac to Rs. 2 Lacs.
First investment bank namely Cresbank was listed on the Lahore Stock Exchange.
8. Tender documents comprising of drawings, bill of quantities, technical specifications and
contract conditions were finalized by April, 1989.
In order to project healthier financial standing of the working members the net capital
balance requirement under SEAP rules was increased from Rs. 50,000/- to Rs. 2,50,000/-.
1990
The Exchange got a sanction of 400 telephones lines for members in the new building
55% of The Building Project was completed successfully
In an Extra Ordinary General Meeting of Exchange, it was decided to increase the
membership admission fee to Rs. 1 Million
1991
The Exchange’s shares turnover showed an increase of 85%
The passenger lifts were installed in the building
A dedicated link between Karachi and Lahore Stock Exchange was installed which
enabled the members and investors to monitor KSE’s share prices in real time
95% of the Building project was completed
1992
Rooms in the new building were allotted on Feb 25th, 1992 to the members through open
general balloting under the rules framed with the approval of the Corporate Law
Authority.
The office shifting to the new building in June and stock market’s activities made this
year as the most eventful year in the history of LSE.
Trading sessions in the new building commenced from June 01, 1992.
Prime Bank hired some space in the new building as the first tenant.
Habib bank shifted its branch to the new building.
The Clearing House operations were computerized.
Accounting had also been computerized to a large extent.
A Central Depository Company was incorporated to provide custodial services in order to
eliminate physical handling of share certificates and to remove the present bottleneck of
time taken in transferring the shares.
LSE actively participated in the amendment of Securities and Exchange Ordinance, 1969
by the Government.
The depressed conditions of the Stock Market from February 1992 to October 1992 could
also be attributed to a number of factors such as global recession in textile exports,
9. increased supply of securities during the last 20 months, diversion of liquidity towards
privatization and sometimes panic selling by the market players, investors, who had
borrowed excessively at high cost and possibly beyond their means
Civil construction of the new LSE building was completed
Rules for the allocation of rooms to the members in the new LSE building were approved
by the Board and CLA and duly notified in the Gazette of Pakistan
The 5% shares of the Central Depository Company of Pakistan Limited were floated by
KSE with collaboration of other financial institutions had been given to the LSE
LSE decided to have “Saturday” as the weekly “Non-Trading Day” instead of
“Thursday”
LSE Telephone Exchange was declared operational and telephone connections including
the intercom facilities were provided to members to facilitate their work
In the process of computerization, a total of five (5) computers along with Lazer printers
and accessories were procured
Computerized trading hall was developed
The EOGM held on October 17th, 1992 approved a special resolution to amend Article
64 of the LSE Articles Of Association by substituting the word and number fifteen (15)
instead of the word and number eleven (11), thus the number of LSE directors had been
increased from eleven to fifteen; inclusive the President.
In EOGM it was also resolved to approve an investment by the LSE in CDC not
exceeding Rs. 5,000,000/- from time to time subject to the approval of Board
The Board of Directors established a Flood Relief Fund for the assistance and
rehabilitation of flood affected people.
Corporate Members were allowed to become member of LSE.
1993
After the allotment of booths to members by general balloting, the morning session of the
trading was inaugurated by Mr. Khalil Masood, member CLA. As a result of this a record
turnover of 2.1 million was recorded on the first day.
LSE share price index of 101 companies was started.
The corporate law authority formed a committee for integrated computerization program
at all the three Stock Exchanges
The LSE paid Rs. 2.5 million for the 5% equity participation in the CDC of Pakistan.
As per the requirement of CLA, Mr. Jamil Ahmad (Secretary) was promoted to the
position of the first General Manager of the Exchange.
The first library of the New Exchange Building was made functional in the Basement II
of the premises
10. The CLA approved the Provisional Listing Rules of companies at LSE
1994
The record turnover of 369.6 million shares was recorded, which showed an increase of
34% from the previous year.
A separate clearing house with computerized clearing was setup.
The exchange entered into an agreement for formation of Pakistan Credit Rating Agency
“PACRA” along with IFC and IBCA limited of London.
LSE started provisional listing of companies with provisional listing of PTC Vouchers on
July 9, 1994.
Local Area Networking (LAN) implemented by the Computer Graphics and Systems
(CGS).
To improve the working conditions of the trading floor about 34 more booths were
provided in the hall.
“Tele-Stock” an automated voice system was installed at LSE to obtain the latest stock
quotations of the company of one’s choice by placing a telephone call to the Tele-Stock
computer at LSE.
1995
The year 1995 was the Silver Jubilee Year of Lahore Stock Exchange.
The Lahore Stock Exchange celebrated its 25th Anniversary in June. The LSE with more
than 600 listed companies and a market capitalization of $ 11 billion has positioned itself
as an international financial center in Pakistan. Trading activities have been growing
rapidly over the last few years and LSE has kept pace by modernization and automating
its trading and clearance facilities.
LSE entered into an agreement with “Reuters” for sending LSE Share Prices to 142
countries through its worldwide networks.
The BOD decided to get membership of, Federation of Euro-Asian Stock Exchanges
(FEAS), Istanbul.
LSE was awarded the Associated Membership of the FEAS on Oct 3, 1995 at Istanbul.
The BOD in accordance with the instructions of the CLA introduced the T+3 Revolving
System in the shares of the companies making public issue of up to Rs. 100 million under
the system.
The Corporate Law Authority fixed the exposure limit of 100,000 shares per trade day in
the share trading on revolving settlement basis.
The Board of Directors of LSE established a mutual contribution Welfare Fund to protect
the LSE clearing House and the interest of the members of the Exchange.
11. 1996
The stock market was affected due to political, economic and technical factors. However,
the approval of IMF standby loan agreement of U.S $600 stabilized the market to some
extent.
The major reason for prolonged bearish sentiments in the Stock Market was the liquidity
crunch and the absence of local institutions and individual support to the market.
The LSE’s ambitious computerization project was completed and the “mock trading” had
been started since November, 1996. The “Automated Trading” was expected to start by
December, 1996.
The Legal Complaint Cell of LSE was established by the Board to redress the grievances
of the general investors which successfully redressed 168 complaints of the investors in
the year.
1997
The Stock Exchange has established investor protector fund.
LSE acquired 10% shares of Central Depository Company of Pakistan which entitled the
Exchange a permanent seat of the Board.
Stock Exchange Became The “First Fully Automated” Stock Exchange Of Pakistan.
LSE also became the first stock exchange in Pakistan to provide remote trading facilities
from anywhere in Pakistan.
Automated trading on LOTS was started on Jan 21st 1997 and was formally inaugurated
by Caretaker Prime Minister of Pakistan Mr. Malik Miraj Khalid.
The Trading member’s numbers at LOTS in 1997 increased to 105 from 70 members.
A server room for more server machines was also built.
The Central Depository Company was formally inaugurated by the President of Pakistan
Sardar Ahmed Farooq Khan Leghari and MCB was put into Central Depository System
as First eligible security.
The Board of Directors initiated a vast process of Computerization that was started in
1994.
<The Pak Rupee was devalued by 8.7% in October, 1997 in order to boost the declining
exports of the country and to be competitive in the international market.
1998
The Asian crises created an environment of uncertainty and lack of confidence in
Pakistan’s economy.
The exchange carried out major restructuring during the year under the provision of the
capital market development plan, the restructured board was formed on April, 1998. The
12. President and Vice President were re-designated as Chairman and Vice Chairman
respectively.
The Volume of Shares Turnover at LSE remained unaffected by bearish spell and
touched new heights.
The stock exchanges were severely affected due to the currency turmoil in the Asian
region. This spillover effect resulted in bearish spell in the region. The economic
recession affected the share prices downward movement in equity values for over a year.
Market capitalization of ordinary shares declined by 46.29% as compared to previous
year. The only sector in which Market Capitalization showed positive trend was Fuel and
Energy.
After the imposition of sanctions on Pakistan as result of May, 1998 nuclear blasts,
agreement with IMF for $5.5 million dollars financial package was a very positive sign
for the economy and the stock market.
LSE started Two-Tier trading system to facilitate the investors to trade in scrips in the
afternoon session.
LSE presented itself on internet, the internet site address was “ www.lse.brain.net.pk”
The contract agreement for the civil works of Second tower project was finalized on Sept
12th, 1998. The foundation stone was laid by Honorable Chief Minister of Punjab Mr.
Shahbaz Sharif, who appreciated the role of LSE at primary resource mobilization center.
LSE held a 30% stake in the shareholding of PACRA, which had already crossed an
important milestone of completing 100 credit ratings by Sept, 1998.
1999
The sanctions imposed due to the nuclear detonations affected the economy of Pakistan
as well as the Exchange.
All the domestic and external factors, created a climate of uncertainty and lack of
confidence on Pakistan’s Economy.
Under the provision of Capital Market Development Plan of the Asian Development
Bank, LSE re-structured itself by reducing the eighteen (18) Governing Board Directors
to ten (10) elected Directors including Chairman and Vice Chairman, seven (7) Non-
Member Directors and, a full time Managing Director and Chief Executive.
The Exchange enhanced its infra-structure by May 1999 and was able to provide four or
even more than four trading terminals per Broker.
The Exchange initiated a new system to display KSE’s data on building’s data and video
networks.
The Securities and Exchange Commission of Pakistan (SECP) succeeded the CLA.
2000
13. LSE’s MIS Department developed new in-house software for automated trading namely
“ULTRA TRADE”.
The new trading system finished dependence on foreign software suppliers resulting in
saving almost $50,000 to $60,000 $60,000
LSE was awarded ISO-9002 Certification for quality control procedures.
Amongst global emerging markets, Pakistani stock market was on top with the highest
percentage gain achieved during the year.
Another phenomenon was the revival of the Mutual Funds industry.
LSE was the first Stock Exchange in Pakistan, which had started odd-lot trading through
LOTS.
LSE received Certification of Recognition of ISO 9001:2000 from Moody International
Certification.
Accounting department was completely computerized through an “Accounting System”
prepared by the MIS department.
LSE became the member of South Asian Federation of Exchanges (SAFE).
2001
LSE launched Internet Trading System (trading from terminals out of building) from
July, 2001. LSE started afternoon trading sessions which proved to be tremendously
successful.
The National Clearing Company of Pakistan Limited (NCCPL) was incorporated to
replace the separate and individual Clearing Houses operated by each of the three
Pakistani Stock Exchanges.
2002
Pakistan’s stock market was declared as the Best Performing Stock Market of the World
for the year 2002 by international magazine “Business Week”.
Code of Corporate Governance was incorporated in the Listing Regulations.
Banks and financial institutions were allowed to become Associate Member of LSE
Clearing House.
Trading in Futures Contracts was introduced.
LSE launched new LSE‐25 Index replacing LSE‐101 index.
LSE became equity partner in National Commodity’s Exchange Limited (NCEL).
2003
14. The size and composition of LSE Board of Directors was reduced. The Board of
Directors constituted 09 members, from which 05 were elected members of the
Exchange, 4 were non‐members nominated by SECP, and a Managing Director, who is
also non‐Member.
Surveillance Department was established at LSE.
LSE implemented Automated Trade Risk Filter (TRF) to monitor the members’ trading
exposure on real time basis.
2004
The System Audit of LSE members introduced.
Clearing and Settlement Operations of LSE were switched over to the National Clearing
Company of Pakistan Limited.
LSE opened country’s first remote Trading Floor at Faisalabad.
LSE hosted SAFE Conference in Lahore and the chairmanship of SAFE, too, rested with
the Lahore Stock Exchange.
2005
A landmark decision was taken in March 2005 to demutualize and to simultaneously
integrate with Islamabad Stock Exchange to form a National Stock Exchange.
LSE started Faisalabad Trading floor in November 2004 and inaugurated second Trading
Floor at Sialkot on June 27th, 2005.
LSE launched a series of investor education and awareness programs.
Investigation & Enforcement Unit was setup to maintain a check on the market abuses
(scope of Surveillance enhanced).
The concept of Unique Identification Numbers was introduced.
2006
MOU was signed with ISE for the establishment of Unified Trading Platform.
The Finance Act 2006 included provisions for corporatization and demutualization of
Exchanges in Pakistan. The Demutualization Committee of the Exchange recommended
corporatizing LSE.
VaR based Margining Regime was introduced.
2007
LSE Training Institute was established, the first formal course was launched on October
3rd, 2006.
15. LSE & ISE started joint trading on a common platform through Unified Trading System
(UTS).
Implementation of procedure of Continuous Funding System (CFS) transactions in case
of corporate actions.
2008
ULTRA TRADE sale to Ghana Stock Exchange, marking the first international sale of
LSE’s in-house developed software.
Cash Settled Future Contracts were launched.
Implementation of Financial Institutions (FIs) Margining System.
LSE witnessed one of its most volatile trading years; when the index was frozen on
August 27th 2008, for 101 days period, as was the case for other Stock Exchanges of
Pakistan too.
2009
“One Window Operations” was instituted by LSE to facilitate the activity of inactive
LSE members.
Securities Lending & Borrowing Software was developed and sold.
Client Level Margining was implemented.
Debt Securities automated trading was launched.
LSE started a separate Regulatory Division, enabling enhanced dealing with matters such
as arbitration awards and litigation matters.
Corporatization & Demutualization Act was passed by National Assembly.
2010
Clearing House and the Risk & Exposure Management Department, these two
departments were merged to form the Risk and Clearing Department.
IT division continued to service the automation and support of Ghana Stock Exchange
Automated Trading System.
Auto-Debit facility for payment of weekly charges & taxes levied on Brokers trading.
Manual distribution of Market Access Fee (MAF) cheques to brokers regarding has been
replaced with direct crediting of amounts to Brokers respective bank account.
Interface for reporting of Off-System transactions carried out by Brokers has been
developed and made available at the LSS.
To cater to the requirements of Client Level Margining, interfaces have been made
available in the LSS to allocate, reallocate and withdraw funds from individual clients'
accounts.
16. Multiple reports have been developed and made available in LSS to facilitate Brokers.
2011
MOU was signed between Lahore Stock Exchange and Tehran Stock Exchange fulfilling
the purpose of increased co-operation, increased mutual understanding and assistance in
various areas including technology.
LSE introduced Marginal Trading System (MTS) in line with international leverage
products.
Lahore Stock Exchange (G) Limited (LSE) launched the Securities Borrowing and
Lending Platform (SLB) developed for National Clearing Company of Pakistan Limited,
the SLB provides a prior arrangement of borrowing securities to cover the short sale
under the Ready Market scrips.
Member Relations Department (MRD) was setup to facilitate member related issues.
LSE also took the initiative to setup an independent Media and Public Relations
Department to enhance relations with public and media personnel.
Trainings and courses have been planned and carried out for the Capacity Building of
Members.
To bring transparency and timely settlement, all trades executed at Ultra Trade Platform
shall be settled through Automation of Securities Settlement Mechanism whereby
securities shall be moved in and moved out from perspective CDC Sub-Account
maintained with the CDC participant of the Brokerage House.
In 2009 SECP formed a committee to review the existing system of Debt Market. In light
of recommendations of Review Committee on BATS, the exchanges were directed to
enhance the existing interface of Bonds Automated Trading System, Removal of Circuit
Breaker, restriction of trade listed TFC, Disclosed Trading, Trade-to-Trade settlement,
closing price mechanism etc.
LSE has successfully completed its 40 years and looks promisingly ahead into the future
striving for continuous improvement and finer milestones.
Future Outlook
The prime objective of the Exchange for the upcoming years shall be a 100% growth/value
creation in the balance sheet size of the Exchange with a minimum of 20% increase in the EVA
on year on year basis.
LSE Board has already allocated some budget for the establishment of a nationwide association
of stock brokers.
The Exchange would initiate and successfully complete the process of corporatization in the near
term (during one year). The process of full demutualization may be completed during the
medium term (1- 3 years) due to tough global economic conditions.
17. LSE is further striving to create a name for better investor's protection standards; to exercise
effective supervision over the listed sector and the market participants, to continuously deliver
value to its owners and stakeholders.
The future strategic activities of the Exchange would be divided into three broad categories
namely; the "Business Growth Strategy;" the 'Market Support Initiatives' and the
'Branding/Servicing Strategy.
Board of Directors - 2011
Mr. Aftab Ahmad Khan
Chairman
Mr. Aftab Ahmad Ch.
Managing Director / CEO
Mr. Ammar-ul-Haq
Elected Director
Ms. Bushra Naz Malik
Nominee Director
18. Mr. Jahanzeb Mirza
Elected Director
Engr. Mazhar Rafiq
Elected Director
Mirza Ejaz Ullah Baig
Elected Director
Mr. Muhammad Masud Akhtar
Nominee Director
Mr. Mumtaz Hussain Syed
Nominee Director
19. Mr. Naeem Anwar
Elected Director
Managing Directors
Mr. Aftab Ahmad Ch.
Since October 22, 2010
Mr. Aftab Ahmad Ch., has been the Managing Director/CEO of the Lahore Stock Exchange (G)
Limited since October 2010.
During the earlier capital market assignment, Mr. Aftab served as the Managing Director/Chief
Executive Officer of Islamabad Stock Exchange, Pakistan. Mr. Aftab has also been involved
with the Board level work related to the system designing & implementation of the domestic
nationwide structure for the Securities Clearing and Settlement Company, as well as for the
regulatory and product development related work at the Board level for the operations of the
only commodity exchange in Pakistan. In the recent past, Mr. Aftab has also served on the Board
of Directors of other capital market institutions in Pakistan such as M/s JCR-VIS-a leading
independent corporate credit rating agency in Pakistan, and the Institute of Capital Markets.
Mr. Aftab holds an MBA degree from Nicholls State University, Thibodaux (LA), USA, and has
also attended Executive Management Program at the Stanford University, USA. He has also
attended many other securities market related programs both at home and abroad.
20. Mian Shakeel Aslam
2007 – 2010
Mian Shakeel Aslam was appointed the Managing Director of the Exchange during Nov 2007
and he continued in this position till Jun 2010. Before his appointment as the MD, Mr. Shakeel
served as the General Manager of the Exchange for a period of about one year.
During the earlier career, Mr. Shakeel served as the Vice President of Global Markets and
Investment Banking Division at Merrill Lynch, London for about four years. From 1997 to 2002,
he served as the Manager of the Financial Services Group of KPMG.
Mr. Shakeel’s educational qualification included ACA from the Institute of Chartered
Accountants England and Wales (ICAEW) and a Bachelor of Science (Hons) in Accountancy
from University of East Anglia, UK.
Mr. Hamid M. Imtiazi
2004 – 2007
Mr. Hamid Imtiazi joined LSE during June 2004 and remained in this position for a period of
over three years. Before joining LSE, Mr. Imitiazi had worked as the CFO/EVP of Prime
Commercial Bank Ltd. from 1998 to 2004. He also held various management positions in the
Financial Sector from 1979 onwards during which time, he served with various local and foreign
companies.
Mr. Imtiazi is an old Ravian has a MBA degree in Finance from Pepperline University, Malibu
USA.
Mr. Samir Ahmed
2001 – 2004
Mr. Samir Ahmed joined LSE as the Managing Director/CEO in July 2001 and remained in this
position for about three years. Before joining LSE, he worked as the Senior Advisor to Dubai
Financial Market as well as for the Government of Dubai from 1999 to 2001. He also spent five
21. years in the equity brokerage industry, including the period from 1995 to 1998 when he headed
the equities business of ING Barings in Pakistan.
Mr. Samir Ahmed is an old Aitchisonian and has a Bachelors degree in Economics from
University of Chicago and a Masters degree from London Business School.
Mr. Jamil Ahmad
1998 – 2001
Mr. Jamil Ahmad (Late) had the distinction of being the first Managing Director of the
Exchange. Mr. Jamil Ahmad Joined LSE in 1986 and served as the Secretary of the Exchange for
almost seven years, till his promotion to General Manager and then to the Managing
Director/CEO of the Exchange. He remained with the Exchange till June 2001.
Before joining LSE, he had worked as Financial Analyst for a period of eight years with ICC,
Financial Surveys, London. He also participated in several projects for National Economic
Development Organization (NEDO) of the Great Britain. He had also served for four years with
Whinny Murray & Company, Saudi Arabia.
He was an old Ravian and a Member of the Association of Accounting Technicians (MAAT) of
the Institute of Chartered Accountants, England and Wales.
LSE Board Committees - 2011
Every year the Board of Directors constitutes Board Committees to delegate specific advisory
functions. These Board Committees provide vital feedback to the Board to assist it in making
wellinformed decisions and policies of the Exchange. The Committees work within the defined
TORs as approved by the Board to discharge their respective responsibilities/functions.
Committees formed under the Articles of Association & General Regulations
1. Advisory & Arbitration Committee
(Under General Regulation No. 24)
Members
1. Rana Naveed Ahmed – CRO – Convener
2. Mr. Ahmed Naeem, Nominee Director, Reliance Capital (Pvt.) Ltd.
22. 3. Mr. Javaid Iqbal, Nominee Director, Javed Iqbal Securities (Pvt.) Ltd.
4. Dr. Moatsim Billah, Nominee Director, Techno Fundamental Securities (Pvt.) Ltd.
5. Mr. Naeem Anwar, Nominee Director, Maan Securities (Pvt.) Ltd.
6. Syed Hassan Abid Zaidi, Nominee Director, Escorts Capital Ltd.
7. Mr. Waseem Ahmed, Nominee Director, Fairway Securities (Pvt.) Ltd.
8. Mr. Mujahid Nadeem –Deputy General Manager
9. Mr. Nadeem Asghar – Manager Member Relations
10. Mr. Salman Ali Bukhari – Assistant Manager
11. Mr. Barkat Ali Anjum – Assistant Manager, Media Relations
Secretary
Secretary Arbitration Committee
2. Arbitration Committee
(Under Article 134)
Members
1. Mian Tajammal Hussain
2. Mr. Habib ullah Sheikh, Nominee Director, Habib ullah Sheikh (Pvt.) Ltd.
3. Khawaja Imtiaz Ahmed, Nominee Director, INA Securities (Pvt.) Ltd.
4. Syed Asim Zafar, Nominee Director, Zafar Securities (Pvt.) Ltd.
5. Dr. Yasir Mahmood, Nominee Director, Yasir Mahmood Securities (Pvt) Ltd.
Secretary
Company Secretary
3. Defaulters Committee
(Under Article 104)
Members
1. Mr. Javed Iqbal, Nominee Director, Javed Iqbal Securities (Pvt.) Ltd. - Convener
2. Mr. Afzal Rahat, Nominee Director, Rahat Securities Ltd.
3. Mr. Asif Baig Mirza, Nominee Director, ABM Securities (Pvt.) Ltd.
4. Mr. Habib Ullah Sheikh, Nominee Director, Habib Ullah Sheikh (Pvt.) Ltd.
23. 5. Khawaja Imtiaz Ahmed, Nominee Director, INA Securities (Pvt.) Ltd.
6. Mr. Omar Khalil Malik Nominee Director, Networth Securities Ltd.
7. Mirza Ejaz Ullah Baig Nominee Director, Capital Vision Securities (Pvt.) Ltd.
Secretary
Chief Regulatory Officer
4. Membership Committee
(Under Article 103)
Members
1. Mr. Jahanzeb Mirza, Nominee Director, S.D. Mirza Securities (Pvt.) Ltd. – Convener
2. Mr. Ammar-ul-Haq, Nominee Director, Al-Haq Securities (Pvt.) Ltd.
3. Ms. Bushra Naz Malik
4. Mirza Ejaz Ullah Baig, Nominee Director, Capital Vision Securities (Pvt.) Ltd.
5. Engr. Mazhar Rafiq, Nominee Director, M.R. Securities (SMC-Pvt.) Ltd.
6. Mr. Mumtaz Hussain Syed
7. Mr. Naeem Anwar, Nominee Director, Maan Securities (Pvt.) Ltd.
Secretary
Member Relations Officer
Committees formed under Code of Corporate Governance
5. Audit Committee
Members
1. Ms. Bushra Naz Malik – Convener
2. Mr. Ammar-ul-Haq, Nominee Director, Al-Haq Securities (Pvt.) Ltd.
3. Mirza Ejaz Ullah Baig Nominee Director, Capital Vision Securities (Pvt.) Ltd.
4. Mr. Mumtaz Hussain Syed
5. Mr. Omar Khalil Malik, Nominee Director, Networth Securities Ltd.
24. Secretary
Assistant Manager Internal Audit
6. Human Resources Committee
Members
1. Mr. Mumtaz Hussain Syed – Convener
2. Mr. Ammar-ul-Haq, Nominee Director, Al-Haq Securities (Pvt.) Ltd.
3. Ms. Bushra Naz Malik.
4. Mr. Jahanzeb Mirza, Nominee Director, S.D. Mirza Securities (Pvt.) Ltd.
5. Engr. Mazhar Rafiq, Nominee Director, M.R. Securities (SMC-Pvt.) Ltd.
Secretary
Acting Manager HR
Committee formed under UTS Regulations
7. Joint Steering Committee
The Committee shall be consisted of the following:
i. Three (3) Members of LSE who are eligible to trade on UTS to be appointed by Board of
LSE;
1. Mr. Omar Khalil Malik, Nominee Director, Networth Securities Ltd.
2. Mr. Ammar-ul-Haq, Nominee Director, Al-Haq Securities (Pvt.) Ltd.
3. Mr. Adeel Zafar, Nominee Director, Adeel Zafar Securities (Pvt.) Ltd.
ii. Three (3) Members of ISE eligible to trade on UTS to be appointed by Board of ISE;
iii. The Managing Directors of the LSE and ISE; and
Chief Technology Officer (CTO), by virtue of his office, who shall be a technical advisor to the
JSC. Convener to be elected by the Committee itself.
Secretary
Chief Information Officer
Other Advisory Committees
25. 8. Building Committee
Members
1. Mr. Zeeshan Dar, Nominee Director, Darson Securities (Pvt.) Ltd. - Convener
2. Mr. Adeel Zafar, Nominee Director, Adeel Zafar Securities (Pvt.) Ltd.
3. Mr. Ammar-ul-Haq, Nominee Director, Al-Haq Securities (Pvt.) Ltd.
4. Mr. Hasan Ahmad Chaudhry, Nominee Director, Jamshed & Hasan Securities (Pvt.) Ltd
5. Mr. Javed Iqbal, Nominee Director, Javed Iqbal Securities (Pvt.) Ltd.
6. Khawaja Usman Arif, Nominee Director, Khawaja Securities (Pvt.) Ltd.
7. Mirza Ejaz Ullah Baig, Nominee Director, Capital Vision Securities (Pvt.) Ltd.
8. Mr. Omar Khalil Malik Nominee Director, Networth Securities Ltd.
9. Mr. Umair Butt Nominee Director, Dosslani’s Securities (Pvt.) Ltd.
Secretary
Project Manager
9. Company Affairs Committee
Members
1. Mr. Omar Khalil Malik, Nominee Director, Networth Securities Ltd. - Convener
2. Mr. Asif Baig Mirza, Nominee Director, ABM Securities (Pvt.) Ltd.
3. Ms. Bushra Naz Malik.
4. Dr. Zafar Iqbal, Nominee Director, Horizon Securities (SMC-Pvt.) Ltd.
5. Mr. Fawad Dosslani, representative, Dosslani’s Securities (Pvt.) Ltd.
6. Khawaja Imtiaz Ahmed, Nominee Director, INA Securities (Pvt.) Ltd.
7. Mr. Muhammad Ashraf Hussain Adhi, Nominee Director, Maha Securities (Pvt.) Ltd.
8. Mr. Muhammad Nadeem Ejaz, Nominee Director , Adeel & Nadeem Securities (Pvt.)
Ltd.
9. Mr. Muhammad Rafiq, Nominee Director, Equity Master Securities (Pvt.) Ltd.
10. Mr. M. Tabassum Munir, Nominee Director, MTM Securities (Pvt.) Ltd.
11. Mr. Waseem Ahmad, Nominee Director, Fairway Securities (Pvt.) Ltd.
26. Secretary
Assistant Manager Company Affairs
10. Corporatization & Demutualization Committee
Members
1. Dr. Yasir Mahmood, Nominee Director, Yasir Mahmood Securities (Pvt.) Ltd. -
Convener
2. Mr. Adeel Zafar, Nominee Director, Adeel Zafar Securities (Pvt.) Ltd.
3. Mr. Ammar-ul-Haq, Nominee Director, Al-Haq Securities (Pvt.) Ltd.
4. Mr. Ashraf Hussain Adhi, Nominee Director, Maha Securities (Pvt.) Ltd.
5. Dr. Arslan Razaque, Nominee Director, Dr. Arslan Razaque Securities (SMC-Pvt.) Ltd.
6. Mr. Habib Ullah Sheikh, Nominee Director, Habib Ullah Sheikh (Pvt.) Ltd.
7. Mr. M. Tabassum Munir, Nominee Director, MTM Securities (Pvt.) Ltd.
8. Mirza Ejaz Ullah Biag, Nominee Director, Capital Vision Securities (Pvt.) Ltd.
9. Mr. Omar Khalil Malik, Nominee Director, Networth Securities Ltd.
10. Syed Asim Zafar, Nominee Director, Zafar Securities (Pvt.) Ltd.
Secretary
Deputy General Manager
11. Investment Committee
Members
1. Engr. Mazhar Rafiq – Convener
2. Mr. Aftab Ahmed Ch., MD.
3. Mr. Ammar-ul-Haq, Nominee Director, Al-Haq Securities (Pvt.) Ltd.
4. Mr. Mumtaz Hussain Syed.
Secretary
Chief Financial Officer
12. IT Committee
27. Members
1. Mr. Khurram Gulzar, Nominee Director, Value Stock Securities (Pvt.) Ltd. - Convener
2. Mr. Adeel Zafar, Nominee Director, Adeel Zafar Securities (Pvt.) Ltd.
3. Mr. Ali Raza Jafry, Nominee Director, Switch Securities (Pvt.) Ltd.
4. Mr. Amir Ilyas, Nominee Director, Amer Securities (Pvt.) Ltd.
5. Mr. Habib ullah Sheikh, Nominee Director, Habib Ullah Sheikh (Pvt.) Ltd.
6. Mr. Kashif Nisar, Nominee Director, Allied Securities (Pvt.) Ltd.
7. Engr. Mian Sajid Masood.
8. Dr. Moatsim Billa, Nominee Director, Techno Fundamental Securities (Pvt.) Ltd.
9. Mr. Nadeem Ijaz, Nominee Director, Adeel & Nadeem Securities (Pvt.) Ltd.
10. Mr. Omar Khalil Malik, Nominee Director, Networth Securities Ltd.
Secretary
Chief Information Officer
13. IT Steering Committee
Members
1. Mr. Omar Khalil Malik, Nominee Director, Networth Securities Ltd. - Convener
2. Mr. Khurram Gulzar, Nominee Director, Value Stock Securities (Pvt.) Ltd.
3. Mr. Salman Shah: CEO- Softech Technologies Ltd.
4. Syed Asif Shah: CIO – CDC.
5. Zafar Alvi: Chief Officer MIS – SNGPL.
Secretary
Chief Information Officer
14. Legal Affairs Committee
Members
1. Mr. Ammar-ul-Haq, Nominee Director, Al-Haq Securities (Pvt.) Ltd. - Convener
2. Mr. Adeel Zafar, Nominee Director, Adeel Zafar Securities (Pvt.) Ltd.
3. Mr. Afzal Rahat, Nominee Director, Rahat Securities Ltd.
28. 4. Mr. Jahanzeb Mirza, Nominee Director, S.D. Mirza Securities (Pvt.) Ltd.
5. Mr. Omar Khalil Malik, Nominee Director, Networth Securities Ltd.
6. Mr. Zeeshan Dar, Nominee Director, Darson Securities (Pvt.) Ltd.
Secretary
Assistant Manager Legal
15. New Product, Seminars, Publications & Sports etc
Members
1. Mr. Ali Naseer, Nominee Director, High link Capital (Pvt.) Ltd. - Convener
2. Mr. M. Tabassum Munir, Nominee Director, MTM Securities (Pvt.) Ltd.
3. Mirza Ejaz Ullah Baig, Nominee Director, Capital Vision Securities (Pvt.) Ltd.
4. Dr. Moatsim Billah, Nominee Director, Techno Fundamental Securities (Pvt.) Ltd.
5. Mr. Muhammad Amir Riaz.
6. Mr. Muhammad Arshad, Nominee Director, A.S. Securities (Pvt.) Ltd.
7. Mr. Muhammad Asghar, Nominee Director, Pearl Brokerage (Pvt.) Ltd.
8. Mr. Omar Khalil Malik , Nominee Director, Networth Securities Ltd.
9. Mr. Umair Butt, Nominee Director, Dosslani’s Securities (Pvt.) Ltd.
10. Mr. Zeeshan Dar, Nominee Director, Darson Securities (Pvt.) Ltd.
Secretary
Acting Manager HR
16. Tax Committee
Members
1. Mirza Ejaz Ullah Baig, Nominee Director, Capital Vision Securities (Pvt.) Ltd. –
Convener
2. Mr. Adeel Zafar, Nominee Director, Nominee Director, Adeel Zafar Securities (Pvt.)
Ltd.
3. Mr. Asif Baig Mirza, Nominee Director, ABM Securities (Pvt.) Ltd.
4. Mr. Habib ullah Sheikh, Nominee Director, Habib ullah Sheikh (Pvt.) Ltd.
5. Mr. Jahanzeb Mirza, Nominee Director, S.D. Mirza Securities (Pvt.) Ltd.
29. 6. Mr. Muhammad Ilyaas Sethi, Nominee Director, Sethi Securities (SMC-Pvt.) Ltd.
7. Dr. Moatsim Billah, Nominee Director, Techno Fundamental Securities (Pvt.) Ltd.
8. Mr. Omar Khalil Malik, Nominee Director, Networth Securities Ltd.
9. Syed Hassan Iqbal, Nominee Director, MGM Securities (Pvt.) Ltd.
10. Syed Muhammad Ismail Abbasi, Nominee Director, Abbasi & Company (Pvt.) Ltd.
11. Mr. Usman Hameed Chaudhri, Nominee Director, NH Securities (Pvt.) Ltd.
Secretary
Chief Financial Officer
17. Trading Affairs Committee
Members
1. Mr. Naeem Anwar, Nominee Director, Maan Securities (Pvt) Ltd. - Convener
2. Mr. Adeel Zafar, Nominee Director, Adeel Zafar Securities (Pvt.) Ltd.
3. Mr. Amir Illyas, Nominee Director, Amir Securities (Pvt.) Ltd.
4. Dr. Arsalan Razaque, Nominee Director, Dr. Arsalan Razaque Securities (Pvt.) Ltd.
5. Khawaja Sami Rashid, Nominee Director, KSR Stock Brokerage (Pvt.) Ltd.
6. Mirza Ejaz Ullah Baig, Nominee Director, Capital Vision Securities (Pvt.) Ltd.
7. Mr. Muhammad Asghar, Nominee Director, Pearl Brokerage (Pvt.) Ltd.
8. Mr. Muhammad Ashraf Hussain Adhi, Nominee Director, Maha Securities (Pvt.) Ltd.
9. Syed Hassan Iqbal, Nominee Director, MGM Securities (Pvt.) Ltd.
10. Dr. Yasir Mahmood, Nominee Director, Yasir Mahmood Securities (Pvt.) Ltd.
Secretary
Deputy General Manager
Management Team
30. Mr. Farid Malik, CFA
Chief Strategy Officer / Chief Operating Officer
(General Manager)
Mr. Farid Malik heads the Strategy and Operations functions of the Exchange. He has
over 15 years of work experience and has worked on a number of infrastructure
developments (IPPs), project finance, corporate finance, regulatory, administrative and
operational assignments both in Pakistan and abroad. Mr. Malik has a rich background of
the securities/ capital market industry having previously worked at LSE and the
Securities and Exchange Commission of Pakistan.
Mr. Malik is a graduate of the London School of Economics and a Chartered Financial
Analyst (CFA) Charter-holder since 2001. He has also attended a number of international
and local management courses, seminars and workshops. Additionally he also currently
serves on the Board of the Privatisation Commission and as an Adjunct Faculty Member
at Suleman Dawood School of Business - LUMS. He is representing LSE on the Board of
Directors of Pakistan Credit Rating Agency Limited.
Rana Naveed Ahmed
Company Secretary
Rana Naveed Ahmed joined LSE in 1992 as Assistant Secretary. He started his work as
Secretary of the various Board Committees in addition to handling Investors' complaints.
He has been the ISO Coordinator and prepared the Quality Manual and relevant
documents/procedures for ISO 9001 certification of LSE. He was promoted as Manager
Company Affairs in 2006 and dealt with the new listings and enforcement & compliance
of Listing Regulations. In the year 2011, he was promoted as Company Secretary.
He holds Master Degree in Commerce from Hailey College of Commerce, University of
the Punjab. He has worked as a member of project team of the study project on
"Strengthening Stock Exchange Listing Regulations in Member Countries", undertaken
by South Asian Federation of Exchanges (SAFE) and has visited the Stock Exchange of
Mauritius in 2003. He has also attended various courses/conferences on HR management,
Corporate Governance and Corporate Affairs. Before joining LSE, he worked for 2 years
in Daily Jang as Accounts Assistant.
31. Mr. Khurram Zafar
Chief Information Officer
Mr. Khurram Zafar heads the Technology Services Division entrusted with maintaining
LSE's position in the national capital markets landscape as a technology innovator. Prior
to joining LSE, Mr. Zafar worked for Beaconhouse National University as a visiting
faculty member endeavoring to inculcate the spirit of entrepreneurship in BNU's
graduating BSc Honors students.
Before his stint in the field of academia, Mr. Zafar was Co-Founder and Chief
Technology Officer at Insight Technologies, Inc and Epiance, Inc - both Silicon Valley
based software product companies with operations in Pakistan and India respectively.
Prior to that, as Co-Founder and Vice President of Technology of a global technology
services company, e-Force, Inc., Mr. Zafar led numerous enterprise-wide, strategic
initiatives of Fortune 500 companies like VISA, DHL, AT&T, Cingular Wireless,
Agilent, Sony, Chrysler, IBM, British Telecom, Merrill Lynch and Bank of America. It
was during his stint at e-Force, that Mr. Zafar developed United States' first retail, risk
derivatives exchange from a concept into a fully operational reality. Before e-Force, Mr.
Zafar was a sought-after technology consultant and led several technology projects at
Northern Telecom, Paging Network, and Hoechst Celanese. Mr. Zafar did his Bachelors
in Computer Engineering from one of Canada's leading engineering institutions, McGill
University. While at McGill, Mr. Zafar won an IBM sponsored software development
contest spanning over 1500 contestants from all US based Ivy League universities and
top Canadian universities. He is also a Prentice Hall published author of an award-
winning book on Wireless Application development. Mr. Zafar continues to serve on
advisory boards of multiple technology start-ups and has been an investment advisor to
leading US based venture capital firms like Norwest, Capital Z, Greylock and GE
Capital.
MEMORANDUM OF ASSOCIATION OF LAHORE STOCK EXCHANGE
(GUARANTEE) LIMITED
I. The name of the Association is Lahore Stock Exchange (Guarantee) Limited (hereinafter
referred to as the "Exchange").
II. The registered office of the Exchange shall be situated in the province of Punjab.
III. The objects for which the Exchange is established are to undertake in or outside Pakistan
any or all of the following:
1. To conduct, regulate and control the trade or business of buying, selling and dealing in shares,
scrips, participation term certificates, Modaraba certificates, pre-organization certificates, and
securities, tocks, bonds, debentures, debenture stocks, Government paper, loans and any other
instruments and securities of like nature including but not limited to Special National Fund
Bonds and documents of a similar nature issued by the Government of Pakistan or any institution
or agency authorised by it.
32. 2. To maintain high standards of commercial honour and integrity, to promote and inculcate
honourable practices and just and equitable principles of trade and business, to discourage and to
suppress malpractices, to settle and decide points of practice, disputes, questions of usage,
custom and courtesy in the conduct of trade and business.
3. To establish and maintain or to arrange with or through a Bank a Clearing House for the
business of the Exchange, and to frame regulations under which such Clearing House shall
function.
4. To make and adopt regulations regarding the admission, conduct, expulsion and suspension of
members and the mode and conditions in, and subject to, which the business of the Exchange
shall be conducted and from time to time, as may be necessary, to alter, add to, repeal and
substitute such regulations or any of them and to make and implement any new, amended or
additional regulations as may be considered necessary or desirable for the purposes aforesaid.
Such regulations may include but not be limited to:
a) the maintenance and use, or prohibition of the use, of the Exchange or Clearing House
whether in the case of the general body or particular class or classes of persons or, any individual
or firm or company using the same and the nature and times of such user;
b) Determining the classes of contracts and the obligations in respect of which differences may
be paid and payments and deliveries made through a Clearing House;
c) determining the list of securities in which transactions may take place on the Exchange for
ready and cash, or forward, delivery and carry forward or "Budla contract";
d) Fixing and declaring market rates and settlement rates and dates;
e) Determining the opening and closing of the Exchange or market;
f) Determining the forms or contracts to be used;
g) The marking, performance and determination of contracts;
h) Determining the consequences of death, supervening incapacity, insolvency or breach of
contract;
i) The prevention of, and dealing with, "corners" or "Bear raids" in any or every kind of share or
security so as to prevent, stop or mitigate speculation inimical to the purposes of the Exchange;
j) Regulating the business between members, inter se or between any of them on the one hand
and their constituents on the other hand or between any of the members on the hand and their
sub-brokers on the other hand or between sub-brokers on the one hand and their constituents on
the other hand;
33. k) The fixing of brokerage and commission;
l) The levying, compelling payment of and recovering fines, fees, penalties and subscriptions in
connection with any of the objects of the Exchange;
m) The arbitration and settlement of all manner of disputes or difficulties whether between
members and/or their constituents and or sub-brokers in connection with the business of the
Exchange;
n) The provision for disciplinary action, including but not limited to warnings, fines, suspension
and expulsion from membership of the Exchange;
o) The appointment, tenure and conduct of committees;
p) Any purpose considered necessary or desirable in the interests of the Exchange; and from
time to time, as may be necessary, to alter, add to, repeal and substitute such regulations or any
of them and to make and implement any new, amended or additional regulations as may be
considered necessary or desirable for the purposes aforesaid.
5. To apply for and obtain from the Federal Government a Charter for the Exchange or to apply
for and obtain from the Federal Government recognition of the Exchange as a recognized Stock
Exchange and for such purpose to make and submit for the regulation and control of the business
of the Exchange and furnish such information as the Federal Government may require.
6. To provide forms and contracts, compulsory or permissive, and to regulate the making,
carrying out and enforcement of contracts.
7. To acquire, collect, preserve and disseminate statistical or other information in connection
with the business of the Exchange.
8. To collect, collate and edit material for dissemination, and to undertake the printing and
publishing of brochures, pamphlets, quotations, reports, journals, periodicals or other works of
publication in connection with, or for the furtherance of, the objects of the Exchange.
9. To purchase, take on lease or in exchange, hire or otherwise acquire any immovable or
movable property, including but not limited to land, buildings and easements, and any rights and
privileges which the Exchange may think necessary or convenient for its business.
10. To erect, construct, maintain and provide a suitable building or buildings, halls or rooms for
the conduct of the business of the Exchange and to alter, add to or remove any such building or
buildings as may be considered necessary or desirable for the use or convenience of the
Exchange or its members, and to regulate admission to and use thereof.
11. To insure, sell, improve, manage, develop, lease, mortgage, dispose of or otherwise deal with
all or any part of the property of the Exchange.
34. 11- A. To develop software to support Exchange’s business and trading in various market
segments including securities, derivatives, options, contracts and other instruments and to
modify, sell, export or grant license in the software and to enter into cooperation or joint ventures
for this purpose and charge license fee in respect of any such software or information technology
product developed and owned by the Exchange and undertake any other incidental or allied
services thereto.”
12. To advance the moneys of the Exchange upon such securities or without any security and at
such terms as may from time to time by determined, subject to law.
13. To invest the moneys of the Exchange in such manner as may from time to time be
determined.
14. To borrow or raise moneys in such manner as the Exchange shall think fit, except by the
creation and issue of debentures or debenture stock charged upon all or any of the Exchange's
property (present and future) and to purchase, redeem or pay off any such securities.
15. To receive money, without interest, by way of penalty, fines subscriptions, entrance or
membership fees, rents, license fees, listing fee from members, companies or any other persons
for the objects of the Exchange, and to put the same to any use deemed fit.
16. To create, raise, collect, apply and appropriate funds for the benefit and welfare of members
and employees of the Exchange and the surviving heirs of such members and employees in case
of death or incapacity of such members or employees and to do all acts, deeds and things
required, incidental to or necessary for the purpose of giving effect to the objects of the said
funds and for the administration and management thereof.
17. To act in such statutory, supervisory, official or public capacity in relation to securities,
investments financial matters as may be considered necessary or desirable.
18. To subscribe to, become a member of and co-operate with other stock exchanges or
institutions, whether incorporated or not, whose objects are altogether, or in part, similar to those
of the Exchange, and to procure from and communicate to any such institution such information
as may be likely to further the objects of this Exchange or, as may be considered necessary or
desirable.
19. To promote, support or propose legislative or other measures for any activities affecting the
business of the Exchange or any interest therein.
20. To enter into any arrangements with the Government or Government agency which may
seem conducive to the objects of the Exchange or any of them, and to obtain from the
Government or such agency any powers, rights, licenses, privileges or concessions which the
Exchange may think fit and desirable to obtain; and to carry out, exercise and comply with any
such arrangements, rights, licenses, privileges and concessions.
35. 21. To bring, defend or prosecute any suit, action, proceeding, application or arbitration on
behalf of the members or the Exchange as may be considered proper or conducive to the objects
of the Exchange.
22. To sign, seal, execute and deliver all instruments, deeds, documents and writing whatsoever
usual, necessary or expedient in relation to the Exchange or its interest whether as principals or
agents, trustees or beneficiaries, guarantors, consenters or otherwise.
23. To take any action considered necessary to raise the status, or to promote the efficiency of
the Exchange.
24. To do all such other acts and things as may be considered incidental or conducive to the
above objects or any of them.
IV. The liability of the members is limited.
V. Every member of the Exchange undertakes to contribute to the assets of the Exchange in the
event of its being wound up while he is a member, or within one year afterwards, for payment of
the debts and liabilities of the Exchange contracted before he ceases to be a member, and the
costs, charges and expenses of winding up and for the adjustment of the rights of the
contributories among themselves, such amount as may be required not exceeding one thousand
(1,000) rupees.
VI. The income and property of the Exchange when ever derived shall be applied solely towards
the promotion of the objects of the Exchange as hereinabove provided and no portion thereof
shall be paid or transferred, directly or indirectly by way of dividend or bonus or otherwise
howsoever, by way of profit to the persons who at any time are or have been members of the
exchange or to any of them or to any person claiming through any of them. Provided that nothing
herein contained shall prevent the payment of any remuneration to the employees of the
Exchange or other persons in return for services actually rendered to the Exchange or of the
reimbursement of conveyance and travelling expenses of the employees of the Exchange or,
where specifically authorized by the Board of Directors of the Exchange, of the reimbursement
of conveyance and travelling expenses of any Director of the Exchange. Provided further that
nothing herein contained shall prevent the Exchange from making payment of claims to any
member of the Exchange out of the assets of a defaulting member. We, the several persons
whose names and addresses are subscribed hereunder are desirous of being formed into an
Association in pursuance of this Memorandum of Association.
NAMES
1. Mr. Naseer A. Shaikh
2. Mian Rafique Saigol
36. 3. Mr. Tajammal Hussain
4. Mr. Aslam Amin
5. Mr. Nisar Ahmad
6. Mr. Pervez Ahmad
7. Syed Babar Ali
LSE Index LSE-25 | Lahore Stock Exchange
The Lahore Stock Exchange Twenty Five company index also calculates the performance of
stocks assuming that all rights issues and bonus share issues only increase the listed capital. In
the case of bonuses or rights the prices of the shares are not adjusted as they are in the case of the
LSETRI. However, the LSE25 assumes that dividends paid out by a component company are not
reinvested. In summary, in the LSE25, no price adjustments are made when any component
company issues cash dividends.
The Lahore Stock Exchange Total Return Index calculates the performance of stocks assuming
that all payouts are reinvested in the index on the ex-date. The LSETRI assumes that if a
component company issues bonus shares or announces a rights issue it will increase the listed
capital. Additionally, the LSETRI also assumes that all pay-outs by a component company are
100% reinvested in the index. Therefore, the LSETRI is adjusted against such payouts
announced by any of index constituents on its ex-date allowing the index value to remain
comparable over time. Some of the most notable Stock Brokers in Lahore Stock Exchange
include: Mubashar Latif (President), Azan Mubashar (Executive Vice-President), Abubakar
Mubashar (C.E.O).