KARACHI: A division bench of Sindh High Court (SHC) has made "inoperative" the Pakistan Stock Exchange (PSX) Futures Trading Eligibility criteria 4(i) to the extent that it prohibits futures trading of shares of companies which have obtained stay orders against the Securities & Exchange Commission of Pakistan (SECP).
The court gave its interim order after
Pakistan Stock Brokers Association (PSBA) filed a constitutional petition (CP) in SHC against the Futures Eligibility Criteria for Selection of Securities Eligible for Trading in Deliverable Futures Contract (DFC) and Cash Settled Futures Contract (CSF) Market, as notified by PSX, with prior approval of SECP.
PSBA requested the court to declare eligibility Notice dated 17.06.2021 to extent of Criteria 4(i) as illegal, “as it was never submitted to the public for comment and even otherwise has been made in contravention of the Constitution and thus void ab initio, and of no legal effect”.
In the preliminary hearing, the court issued its interim order to make the concerned notice inoperative to the extent that it discriminates against the entities that have obtained stay orders from the court.
Copyright Business Recorder, 2021