KARACHI: Stock brokerage firm Shehzad Chamdia Securities (Pvt) Ltd surrendered its Trading Right Entitlement Certificate (TREC) to the Pakistan Stock Exchange on Monday.
The company’s chairman Shehzad Chamdia said it was not a major move as the company was dormant since 2010. The family already owns and operates through the Standard Capital Securities (Pvt) Limited.
Dormant or inactive brokerage houses have continued to relinquish their TREC since 2015 following the instructions of the Securities and Exchange Commission of Pakistan (SECP) which had given dormant TREC holders the choice to either activate or leave the field. One market participant reckoned that around a dozen such brokerages may have relinquished their right to trade this year. It does not impact their membership of the stock exchange and they would be entitled to the same rights and privileges as other stockbrokers.
The divestment regulations provides for the issuance of a certain number of TREC by the SECP each year, sometimes after the completion of ongoing sale of 40 per cent shares of PSX to a strategic buyer. With another 40pc of the bourse stock already distributed among the member brokers, remaining 20pc stake would be offered to the public which would complete the divestment process.
Courtesy : Dawn News