PHOTO: EXPRESS
KARACHI: The Pakistan Stock Exchange (PSX) has appointed Farrukh H Khan on the vacant post of chief executive officer, despite opposition by some stockbrokers on his hiring.
"The PSX board has finalised the name of Farrukh Khan as the CEO, subject to approval by the apex regulator, the Securities and Exchange Commission of Pakistan (SECP)," confirmed a board director to The Express Tribune on Friday.
Khan is currently serving as the Chief Business Development Officer at Acumen, UK, which invests in companies that have plans and capabilities to improve lives and tackle poverty around the globe instead of giving philanthropy away.
Earlier, the Chinese consortium which has a 40% stake in PSX - the company that runs the trading platform - nominated three candidates for the post of CEO to the board of directors.
PSX to appoint Pakistani national as CEO this time
The consortium has the right to make nominations for the top three positions. However, the board of directors remains the final authority to appoint from among the nominations on such posts.
"The Chinese consortium has nominated three names to PSX board for its final approval. It has placed Farrukh's name on top in the priority order for the post," the director on the PSX board stated. "The entire board unanimously approved his name."
The board approved the name at a meeting held on Monday. "Some 11-12 members attended the meeting out of a total 14 on the board," he said.
"I assume PSX has sent his name to SECP for its approval because Friday was the last day to forward a name for the post to the apex regulatory body," he added.
The board has approved his name after ensuring that he met the fit and proper criteria for the post, including age, experience, education and qualification.
"It may take a month or so for him to join PSX, as SECP might take 10-15 days to give its approval and Farrukh would need to serve a notice period at his current office in UK," he said.
The post at the PSX has been lying vacant since May when Canadian-national Richard Morin resigned from the post after allegedly being found not "fit and proper" for the post. He was hired for a three-year term in January 2018.
Khan is the founding partner and former CEO of BMA Capital, which came into being in 1992 in Pakistan. He has advised many merger and acquisition business deals, including UAE's Etisalat when it acquired 26% stake in the Pakistan Telecommunication Company Limited (PTCL) for $2.6 billion in 2005.
PSX CEO Richard Morin resigns
A section of stockbrokers, however, opposed his appointment. They said the PSX has learnt nothing from its past experience of assigning the CEO post to a person from aboard.
"He does not have first-hand information about developments at the PSX and in Pakistan's economy," a broker said.
Published in The Express Tribune, December 21st, 2019.
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