ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has allowed the TREC holders of former Islamabad Stock Exchange (ISE) and the Lahore Stock Exchange (LSE) to continue with lower paid-up capital.
A circular issued in this regard by the Pakistan Stock Exchange (PSX) on Friday announced that the minimum paid-up capital requirement of Rs35 million has been extended by six months.
The deadline for the minimum paid-up capital was to expire on June 30 but now has been extended to Dec 31. The move is to benefit brokers of former ISE and the LSE as their minimum paid-up capital was Rs5m and Rs15m, respectively.
“The decision was made when the PSX was established in June 2017 that the minimum paid-up capital would remain the same as it was for all the three stock exchanges, but last year the government decided that it would be the same at Rs35m for all TREC holders,” said ISE management company REIT Chairman Zahid Latif Khan.
The delegation told SECP Chairman Farrukh Sabzwari that around 60-70 per cent TREC holders of former ISE and LSE could not meet the deadline of Rs35m by June 30.
“This was mainly due to the bearish conditions prevailing for almost two years and the continued uncertainty,” Khan said, adding “Though the majority have already achieved the paid-up capital of Rs20m.”
At the same time, SECP senior management told Dawn that TREC holders have been directed to enhance their clientele base and increase penetration in new areas.
