LSE all set to expel its corporate member

Lahore Stock Exchange is going to expel its corporate member M/S Wasi Securities (SMC) (pvt) Limited and the decision is expected in the next meeting of the board of directors of the exchange. The Appellate Bench of Arbitration of the Exchange, after conducting hearing in the appeal filed by Wasi Securities, upheld the previous decision, directing the member to pay an amount of rupees 14.5 million to the aggrieved investor.
Earlier, the panel of Arbitrator in its verdict passed an award against the LSE member, ordering Wasi Securities to pay the same amount. Securities & Exchange Commission of Pakistan (SECP) through its various letters had also advised the Exchange to swiftly resolve all complaints against the member and proceed for its immediate expulsion in case of non-settlement of the award.
If expelled, all assets of M/S Wasi Securities (SMC) (pvt) Limited, corporate member will be forfeited by and vested in the Exchange as provided in the Memorandum & 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 the directions of any other court/regulatory forum, a spokesman of LSE said.
On expulsion, the process of settlement of investor's claims, if any, will be initiated in line with the relevant Regulations. However, he added, investors in their own interest are advised to file their claims against the member at the office of the Exchange as soon as the decision to expel is announced.
It may be mentioned that in the past four months, LSE has started taking stern action against such members who have been found violating rules and regulations of the Exchange. The new management has been proactively advocating investor protection and pro-investor stance. The spokesman said SECP has directed Exchanges to uphold investor's protection to increase their confidence and minimise abuse.