PSX considers the trades as valid On Friday evening: management
Our Special Correspondent
Lahore: Trending continued for three additional minutes at the Pakistan Stock Exchange (PSX) for the first time after the exchange was closed on Friday and the management took no notice of the violation, two different sources said.
It was disclosed that 20 percent of total business was done in the three minutes on the day in the additional three minutes. As per the experts the three additional minutes trading has raised many a question including the legal position of the 20 percent trading, how will NCCP will settle the addition transactions that took place in three additional minutes and why did the PSX administration not take the stakeholders on board and spressed the transaction after the official time ended? They said that now it must have to be traced as what companies and persons undertook buying and selling.
The potential beneficiaries can be traced from the $1million surveillance system purchased recently, they said.
The sources said that PSX regulator Pakistan Securities Exchange Commission has taken no official notice of the violation. However, SECP Chairman Amir Khan has ordered investigation into the matter, the sources, said adding that the Chairman has expressed his resentment to the Market Surveillance Division Commission and inquired as to why the division acted as silent spectator and took no notice. It has been said that the Chairman ordered SECP Monitoring Cell to prepare report and bring the responsibles to the light for legal action.
On the other hand, PSX said in a statement that the trading session of Pakistan Stock Exchange Limited (the Exchange) continued for 195 seconds beyond the scheduled closing at 1 pm. During that additional period, a total of 3,492,550 shares were traded which are 1.01% of the total traded volume of 347,496,580 shares and approximately 0.79% by value, of the trading that took place on Friday. Considering the small number of trades and wide market participation in the 195 seconds period post-closing hours, PSX considers the trades as valid. On Friday evening, the Exchange submitted an incident report to the Securities & Exchange Commission of Pakistan. This operational error emanated from the processes related to the upper market halt, activated at the PSX for the first time ever. The system required certain manual procedures that were not performed on time, partly owing to the remote work from home policy currently in place due to the lockdown situation. As the frontline regulator, The Exchange will continue to review and investigate the matter to identify any other irregularity, as well as provide any further information required by SECP. The Exchange stands by its commitment to safeguard the interests of all its stakeholders and market participants. Accordingly, it is aggressively working on implementation of the new IT trading and surveillance system, which will be a state of the art system, and shall significantly mitigate against such issues in future.