LAHORE – The Lahore Stock Exchange (LSE) has decided to expel Khalid Javed Securities and HSZ Securities, corporate members of the Exchange on account of filing of winding up petition before the Lahore High Court. This decision was taken in a meeting of the Governing Board of Directors of the Exchange where a resolution for expulsions of Khalid Javed Securities (Pvt) Limited and HSZ Securities (Pvt) Limited with immediate effect was unanimously adopted to safeguard investors’ interest.
HSZ Securities and Khalid Javed Securities had earlier passed a special resolution for the winding up of their respective companies and filed winding up petition before the Lahore High Court (LHC). The members were also in violation of Regulations 9 and 10 of the regulations governing the registration of their offices/branch offices. As a consequence of this expulsion, all assets of HSZ Securities and Khalid Javed Securities, has been forfeited by and vested in the exchange as provided in the memorandum and articles of association and regulations of the exchange. These assets will be dealt with in accordance with the Regulations of the Exchange or as per direction of the LHC or any other court.
The process of settlement of all investor claims against HSZ Securities and Khalid Javed Securities will be initiated once the LHC reaches a decision. However, the investors in their own interest are advised to file their claims against the defaulting member at the office of the Exchange.
