Annual Report 2012 - Lahore Stock Exchange

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Participation in the International & LocalEvents and Exhibitions: The effort to remainintegrated with the international community continued.It is in learning from being part of a global operation,sharing knowledge and experiences and understandinglocal requirements that LSE shall institute its ownmeasures going forward.LSE's Chief Technology Officer participated in the generalassembly meetings of FEAS at Almaty, Kazakhstan. Theevent provided LSE with a unique chance to explore andexploit the marketing opportunities for our softwareproducts to the regional Exchanges and to interact withthe foreign delegates. Besides this, LSE delegation wasalso included in the “Aman Ki Asha” related meetings inIndia during which the delegation was able to gainsignificant knowledge about the spot agri-commodityoperations in India. Furthermore, LSE's ManagingDirector also participated in the FEAS AGM at Sofia,Bulgaria. LSE also participated in FEAS MarketingExhibition at Almaty. The OIC Stock Exchanges Forummeeting held at Istanbul, Turkey was also attended by theManaging Director.REGULATORY OVERSIGHT FUNCTIONSPERFORMED BY THE EXCHANGEDISCIPLINARY ACTIONS AGAINST THEDEFAULTING MEMBERSDuring the period under review, the Exchange strictlyimplemented the Rules & Regulations of the Exchange inthe best interest of investors and as a result of punitiveactions following members were expelled from themembership of the Exchange:Name of MemberExpulsion DateMr. Muhammad Tauqir Malik 28/10/2011Ali Usman Stock Brokerage (Pvt.) Ltd. 25/11/2011Mr. Shahid Nauman Rana 15/03/2012Y.S. Securities & Services (Pvt.) Ltd. 23/04/2012Stock Master Securities (Pvt.) Ltd. 15/05/2012Guardian Securities (Pvt.) Ltd. 04/07/2012Mian Muhammad Saeed (Late) 01/08/2012The process of verification of claims of investors againstthe above expelled members has already been startedthrough audit firms. Where required, the Exchange hassolicited the necessary directions of the Courts. Duringthe year, prorate distribution of the investors claimsagainst Mr. Najam Riaz Ghauri, expelled member werecompleted.ANNUAL REPORT 2011-12 31
Directors’ ReportSTATUS OF THE INVESTOR COMPLAINTS AND ARBITRATION AWARDS Statistics of Investor Complaints:Opening Balance: (as on 01 January, 2012) 784Received Complaints & Appeals (01 January, 2012 to 30 October, 2012) 1575Disposed Off (01 January, 2012 to 30 October, 2012) 99Pending Complaints* & Appeals (as on 30 October, 2012) 2260It may be noted that most of the complaints are pending for adjudication due to restraining orders of the Courts. Pending Investor Complaints before the Arbitration Committee:Pending beforeNumber of ComplaintsSole Arbitrator/Panel of Arbitrators 31The Appellate Bench 3 Pending Investor Complaints against the expelled Members:Sr. No. Complaints against Number of Complaints Amount Involved1 M/s. Khalid Javed Securities (Pvt.) Ltd. 365 64,851,1312 M/s. HSZ Securities (Pvt.) Ltd. 132 54,435,9033 M/s. Wasi Securities (SMC-Pvt.) Ltd. 74 74,984,4784 M/s. Ali Usman Brokerage (Pvt.) Ltd. 84 65,307,6265 Mr. Muhammad Tauqir Malik 118 31,547,3436 Mr. Shahid Nauman Rana 63 50,452,3107 M/s. Y.S. Securities & Services (Pvt.) Ltd. 1004 351,750,2758 M/s. Stock Master Securities (Pvt.) Ltd. 382 227,510,3389 Mian Muhammad Seed (Late) 04 13,457,267Total *2226 934,296,671*It may be noted that most of the complaints are pending for adjudication due to restraining orders ofthe Courts.SYSTEM AUDITS AND FOLLOW UP ACTIONSTAKEN DURING THE YEARThe Exchange has a regular system for checking thecompliance of the trading members (TREC Holders) withthe applicable Rules and Regulations. The third ballot ofSystem Audit of brokers under the Regulations GoverningSystem Audit of Brokers of the Exchange for the year2010 cycle was successfully completed within time. As ofJanuary 11, 2012 there were a total of 152 members ofwhich 81 were active, 62 were inactive, 06 were expelledand 03 were suspended. A minimum of 25% of thebrokers needed to be selected through random ballotingin accordance with the Regulations. The reports of systemaudit were received promptly within the stipulated timeof the appointment of system auditors. Consequently,wherever the Auditors highlighted departures from theRegulations, the Exchange issued show cause notices tothe brokers and solicited their explanations in person orthrough written representation. The head of InternalAudit was also asked to verify the subsequent complianceby the brokers before the show cause notices weredisposed off. The reports of System Audits of the Brokerswere sent to SECP in the prescribed format.32LAHORE STOCK EXCHANGE
Page 1 and 2: L A H O R E S T O C K E X C H A N G
Page 3 and 4: 2LAHORE STOCK EXCHANGE
Page 5 and 6: Corporate InformationLahore Stock E
Page 8 and 9: Board of Directors
Page 10 and 11: First Board of Directorsafter Demut
Page 12 and 13: Profile of DirectorsMr. Aftab Ahmad
Page 14 and 15: Profile of DirectorsMr. Ammar-ul-Ha
Page 16 and 17: Profile of DirectorsMs. Bushra Naz
Page 18 and 19: Profile of DirectorsMr. Masood Akba
Page 20 and 21: Profile of DirectorsMr. Mumtaz Huss
Page 22 and 23: Directors’ Report
Page 24 and 25: Directors’ Reportmembers are regi
Page 26 and 27: Directors’ ReportIncomeActual Act
Page 28 and 29: Directors’ ReportDescriptionThe A
Page 30 and 31: Directors’ ReportSEGREGATION OF C
Page 34 and 35: Directors’ ReportHUMAN CAPITAL IN
Page 36 and 37: Directors’ ReportPOSSIBLE LISTING
Page 38 and 39: Directors’ ReportBOARD COMMITTEES
Page 40 and 41: Corporate Governance
Page 42 and 43: Statement of Compliance with CCGFor
Page 44 and 45: Organizational Roundup
Page 46 and 47: Market Operations DivisionMarket Op
Page 48 and 49: Market Operations DivisionName of C
Page 50 and 51: Market Operations DivisionThe ongoi
Page 52 and 53: Market Operations DivisionThe follo
Page 54 and 55: Corporate Management DivisionSittin
Page 56 and 57: Corporate Management DivisionHUMAN
Page 58 and 59: Corporate Management DivisionWeb an
Page 60 and 61: Regulatory Affairs DivisionSitting
Page 62 and 63: Regulatory Affairs DivisionInvestor
Page 64 and 65: Technology Services DivisionSitting
Page 66 and 67: Technology Services DivisionAssets
Page 68 and 69: Technology Services Division In ord
Page 70 and 71: Financial Management DivisionSittin
Page 72 and 73: LSE Highlights
Page 74 and 75: PictorialVisit of National Defence
Page 76 and 77: PictorialMr. Thomas Morris Chief Ec
Page 78 and 79: PictorialSECP Chairman Mohammad Ali
Page 80 and 81: Visitors’ CommentsThank you for s
Page 82 and 83:
Visitors’ CommentsMany thanks to
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Financial Highlights
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Summary of key operating & financia
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Income & Expenditure StatementVerti
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Financial HighlightsBalance Sheet H
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Financials
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Auditors’ Reportaccordance with t
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Income and Expenditure AccountFor t
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Statement of changes in Funds and R
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Financial Notes
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Financial Notes2.3 Constitution of
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Financial Notes2.5 Significant even
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Financial Notes- ProvisionsProvisio
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Financial Notes• Offsetting Finan
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Financial Notes5.2 Fixed assetsa) P
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Financial Notes5.4 Foreign currenci
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Financial Notes5.11 Borrowing costs
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Financial NotesooooooooIncome from
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Financial Notes8 Liabilities agains
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Financial Notes2012 2011Note (Rupee
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Financial Notes11 Trade and other p
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Financial NotesBalance of Members
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Financial Notes14.3During the year
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Financial Notes16 Property and equi
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Financial Notes2012 201118 Long ter
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Financial NotesOpening(Restated)201
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Financial Notes(c)In addition to th
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Financial Notes35 Finance cost2012
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Financial Notes39 Financial instrum
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Financial NotesBank balancesBank Ba
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Financial Notes2012 2011(Rupees in
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Financial Notes39.3.5 Operational r
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Financial Notes41.2 Classification
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Annual Report 2012 - Lahore Stock Exchange

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