Sulaiman Mehdi replaces Hussain Lawai as new PSX chairman

Chief executive officer of private equity firm Cyan Limited, Sulaiman S Mehdi, has been appointed as the new chairman of Pakistan Stock Exchange (PSX), after the post was left vacant following the removal of Hussain Lawai.

Lawai was removed as the Chairman of the Board of Directors of PSX after directives from the Securities and Exchange Commission of Pakistan (SECP) last week, amid the ongoing money laundering case.

“The SECP issued the direction considering the 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,” SECP stated in a statement.

“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,” the further read.

On the other hand a judicial magistrate in Karachi sent Lawai to jail on judicial remand for 14 days. The FIA wanted an extension in their custody of Lawai. The authorities said that they have taken his initial statement and have information on even more accounts, which is why they need to interrogate him.

Lawai, the vice-chairperson of Summit Bank and former chairman of Pakistan Stock Exchange, was arrested on July 6 in a case relating to 29 fake bank accounts made on seven people's names through which Rs 34 billion was funneled.

The accused has asked the court for B Class facilities in jail, are a step up from regular jail cells. The court sent a notice to the FIA regarding Lawai's bail plea and one to the jail superintendent on his request for B Class facilities. The next hearing will be held on July 19.