A number of brokers in the
Pakistan Stock Exchange are opposing the nomination of a
Canadian citizen as its managing director, following a 40 per
cent takeover by a Chinese consortium, a report said today.
The Pakistan Stock Exchange (PSX) was sold to a Chinese
consortium that now holds a 40 per cent but the arrangement
relationship seems to have hit its first real stumbling block
with some brokers and members of the PSX opposing China's
nomination of Richard Morin as managing director.
While the PSX is yet to formally announce Morin's
appointment as the latest MD, officials confirmed that the
board of directors has finalised it in principle, the Express
However, a couple of brokers, showing their concern over
the unofficial appointment, said the Canadian national would
unnecessarily cost more to the company the PSX as he is
being appointed at a huge salary and is also being given
special perks, including residential allowance and
international travelling expenditure.
In addition, a broker said the foreign national would not
be aware of "our national culture and particularly, the stock
market culture" and this may prove to be a hindrance in his
"The stock market mostly operates on personal rapport and
relationship and he (Morin) lacks that on both fronts," a
A PSX official, confirming the appointment, however, said
they have not received any formal opposition from the brokers
and members have the right to have their personal opinions.
"Only the shareholders of the company (PSX) have the
right to accept and reject his appointment and approve and
disapprove of his monthly package. They may do this at the
forthcoming Annual General Meeting likely to be held at the
end of this month or at the beginning of next month," he said.
He said Morin is a professional and experienced official
who has served at Canadian stock markets and the Stock
Exchange of Mauritius. He has worked at several brokerage
houses and asset management companies.
The official added that PSX has given the right to its
Chinese shareholders to nominate candidates for the top three
positions of the market -- managing director, chief financial
officer, and chief regulator officer.
However, the full board of directors is still has the
power to finalise appointment of candidates.
"We have given them (Chinese) the right to nominate
candidates after the PSX sold its 40 per cent stake to the
Chinese consortium early this year," he said.
The official said it may take one to two weeks to make
the formal announcement of the appointment.
The new managing director's appointment is being made at
a time when the PSX's benchmark KSE-100 index is struggling to
recover from a steep correction.
Despite a slim recovery to 42,841 points till September
18, the index is still close to 23 per cent lower from its
peak of 52,876.46 on May 24.
Last year, it grew 46 per cent and emerged as Asia's
top-performing stock market and among the top five in the
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)