Despite opposition, new PSX MD to take charge in Jan

SECP gives approval whereas interior ministry has been informed about the hiring

KARACHI: Pakistan Stock Exchange’s (PSX) newly appointed managing director Richard Morin, a Canadian national, will take charge at the outset of next calendar year.

He was nominated by Chinese stakeholders despite opposition from domestic stock brokers and members.

“Morin is scheduled to join the PSX in the first week of January 2018,” a highly-ranked official told The Express Tribune on Monday.

“The Securities and Exchange Commission of Pakistan (the apex regulator) has given its approval for the appointment. PSX has also informed the interior ministry as Morin is a foreign national,” he said.



“We don’t need the ministry’s approval like the way SECP’s nod comes (in writing). If it will have any objection, it will raise the matter.”

Earlier, the PSX was sold to a Chinese consortium that now holds a 40% stake whereas 20% of PSX shareholding was offered to the general public through an initial public offering. Brokerage houses control the remaining 40% stake.

The official added the PSX had given the right to Chinese shareholders to nominate candidates for the top three positions including the managing director, chief financial officer and chief regulatory officer.

However, the board of directors still has powers to finalise the appointment of candidates.

A couple of brokers, expressing concern over the MD’s appointment, said recently that the Canadian national would unnecessarily cost more as he was being hired at a huge salary with special perks including the residence allowance and international travel expenses.



Market talk suggests Morin’s monthly salary has been set at Rs3 million. A broker argued the foreign national would not be aware of “our national culture and particularly the stock market culture” and that may prove to be a hurdle to his performance.

A PSX official, confirming his appointment, claimed that they had not received any formal opposition from the brokers. “Members have the right to share their personal opinion,” he said.

Published in The Express Tribune, December 12^th, 2017.

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