Annual Report 2012 - Lahore Stock Exchange

Directors’ ReportDateJune 4, 2012June 21, 2012June 23, 2012July 20, 2012July 20, 2012August 13, 2012August 13, 2012August 15, 2012August 17, 2012August 27, 2012August 31, 2012September 3, 2012Task AccomplishedEOGM of LSE ratified the creation and constitution of the Demutualization Committee.The Exchange submitted documents as required under Section 4 of the Act to SECP on June21, 2012. The Exchange however got extension of 120 days from the commencement of theAct from SECP for submission of valuation of the Exchange which was submitted subsequently.After the approval of the Board, the Exchange submitted the re-valuation of Assets andLiabilities of the Exchange as on March 31, 2012 undertaken by M/s. A. F. Ferguson, CharteredAccountants.After the approval of the Board, the Exchange submitted the re-valuation of Assets andLiabilities of the Exchange as on March 31, 2012 undertaken by M/s. A. F. Ferguson, CharteredAccountants.SECP granted approval to the documents submitted by the Exchange with certain amendments.The general body of the Exchange in the EOGM adopted the new set of Memorandum andArticles of the Exchange as approved by SECP.The Exchange issued TREC certificates to the approved list of members of the Exchange.On the instruction of the Exchange, CDC completed allotment of shares in dematerializedformat to the approved list of initial shareholders of the Exchange.The Exchange furnished the required documents in terms of Section 5(3) of the Act, to theRegistrar of Companies, SECP.The Joint Registrar, Company Registration Office, SECP, Lahore issued a 'certificate of reregistration'to LSE on August 27, 2012 (at 8:00 pm) as evidence of its change in status from acompany limited by guarantee to a public company limited by shares. Lahore Stock Exchangestands corporatized and demutualized as a public company limited by shares under the nameof “Lahore Stock Exchange Limited”.Draft Rules Book of the Exchange containing the regulatory amendments to cater for thedemutualized environment was sent for the review of the Commission.The Demutualization Committee of the Exchange approved the valuation of the Exchange asundertaken by NBP & UBL – Consortium and the sealed envelope containing the valuation ofthe Exchange as at March 31, 2012 was submitted to SECP, Islamabad on September 4, 2012.September 26, 2012 LSE held the EOGM to elect four (4) directors of the Exchange in terms of Section 10(2) of theAct for a period of three (3) years to replace the 'first directors' nominated by the Exchange asper Section 4(1)(e) of the Act.It may also be noted that while the process ofdemutualization had been successfully completed by LSE,however the Commission had served a Show Cause Noticeto LSE as well as all the Directors of the Exchange on June22, 2012 on account of non-submission of revaluation ofthe assets and liabilities of the Exchange undertaken by aChartered Accountant Firm within the specified time i.e. byJune 21, 2012 as per Section 4(1)(b) of the Act. Since thesame was submitted to the Commission on June 23rd,therefore after the hearing from the Board, the Commissiontook a lenient view of the late submission and disposed offthe matter through its order dated September 25, 2012.28LAHORE STOCK EXCHANGE