The Lahore Stock Exchange (LSE) has decided to expel M/s. Wasi Securities (SMC-Pvt) Limited, corporate member of the Exchange on account of filing of winding up petition before the Lahore High Court (LHC). This decision was taken in a meeting of the Governing Board of Directors of the Exchange where a resolution for expulsion of M/s. Wasi Securities (SMC-Pvt) Limited, code No 103 with immediate effect was unanimously adopted to safeguard investors' interest.
Wasi Securities, corporate member of the Exchange 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 said member has been expelled on grounds of provisions of Regulations 2(A) (1) (d) & 2(A) (1) (i) of the General Rules and Regulations of the Exchange.
In consequence of this expulsion, all assets of Wasi Securities, corporate member, has been 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 direction of Hon'ble LHC, Lahore or any other Court/Regulatory Forum.
The process of settlement of all investors' claims against Wasi Securities will be initiated once the honourable 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.
It may be mentioned that in the past few months, the Exchange has been actively pursuing cases that involved members' financial insolvency or violation of the Rules & Regulations of the Exchange. The Exchange has expelled five members since December 2010 and is in the process of dealing with the claims of the investors.
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