PSX removes Hussain Lawai as chairman after SECP directive

The Securities and Exchange Commission of Pakistan (SECP) on Tuesday has directed Pakistan Stock Exchange (PSX) to remove Hussain Lawai as Chairman of the Board of Directors of PSX, amid the ongoing money laundering case.

“The SECP issued the direction considering facts that First Information Report (FIR) dated July 6, 2018, has been registered by the Federal Investigation Agency (FIA) under Pakistan Penal Code read with Prevention of Corruption Act, 1947, and the Anti-Money Laundering Act, 2010. The said FIR, among other individuals, also nominated Lawai as one of the accused, and the FIA has arrested him for further investigation.”

“In the interest of the public and the capital markets, the SECP has directed PSX to remove Lawai and appoint a new Chairman of the Board, while ensuring compliance with the regulatory requirements,” stated SECP, in a statement.

Earlier, a judicial magistrate remanded on Saturday Lawai into FIA’s custody for four days. The next day, Supreme Court summoned Lawai and others involved in money-laundering through fake accounts. The court directed the FIA to produce the Chief Executive Officers (CEO)/President of three banks – Summit Bank, Sindh Bank and United Bank Limited before the court on July 12.

Meanwhile, the Ministry of Interior had been ordered to place their names on Exit Control List (ECL), so that they could not leave the country. The court stated Rs7 billion equity amount that Summit Bank deposited in State Bank of Pakistan can’t be withdrawn without the permission of apex court.

However, State Bank of Pakistan (SBP) said that Supreme Court’s order will not affect the depositors of Summit Bank, whose head is also summoned by SC. “The Summit Bank is working in normal manner and meeting its obligations towards depositors and all rumors circulating in the media, particularly social media, about the Summit Bank are baseless and misleading,” SBP said in a statement.