The Karachi Stock Exchange (KSE) Tuesday asked the stock members to either open a participant or investor account with the Central Depositary Company (CDC) so they could receive 40 percent shares under the KSE’s demutualization plan. In a notice issued Tuesday, the front regulator said under the Stock Exchanges (Demutualization, Corporatization and Integration Act, 2012) the statutory status of the KSE would change from a company limited by guarantee to a company limited by shares. It said of the total shares, which shall be allocated to the members of the Exchange, the 40 percent shall be transferred to the members’ respective CDC accounts and in pursuance of Section 9(2) of the Act, the remaining 60pc of the total shares shall be held in KSE participant account of the CDC. These 60pc shares shall be held in the sub-account of initial shareholder in a manner that each sub-account shall hold 60pc of the shares allotted to each initial shareholder. In view of the above and as advised by SECP in this regard, the members not maintaining an active CDC account are advised to either open a CDC participant account or an investor account with the CDC.
