SECP invalidates Askari’s appointment

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has directed the Karachi Stock Exchange (KSE) and its board to immediately refrain Haroon Askari from functioning or exercising any powers of the managing director and of a board director as his appointment is in violation of the Regulations 2005, according to a commission letter on Wednesday.

The commission in its letter to the KSE noted that as per the regulations of the Constitution of the Governing of Board of Directors of Karachi Stock Exchange, 2005, as well as the Artifices of Association of the Karachi Stock Exchange, the managing director can only be appointed by the KSE board with the prior approval of the SECP.


The commission also sought explanation from the Karachi Stock Exchange that why the SECP’s prior approval was not acquired before appointing Askari to act as the managing director.

The SECP said that the Articles of Association of KSE only allow the KSE board to delegate or entrust to a general manager the functions and powers of the managing director in his absence.

Since the managing director by virtue of his office is also a director on the board, hence, the KSE board cannot appoint a person to act as the managing director with full powers and functions without the prior approval of the commission.