The Lahore Stock Exchange (LSE) has informed the Competition Commission of Pakistan (CCP) that it has initiated the process of amending listing regulations, as recommended by the CCP in its policy note issued to the Securities and Exchange Commission of Pakistan (SECP).
The CCP had issued a policy note to the SECP on July 12 recommending revocation of amendments made to the Karachi Stock Exchange (KSE) Listing Regulations on June 22.
The proposed amendment which had been forwarded for gazette notification includes a clause requiring directors of all listed companies to get a certification of “The Board Development Programme,” offered by the Pakistan Institute of Corporate Governance (PICG) at a cost of Rs200,000 per director.
If approved, the amendment can lead to the creation of a monopoly of PICG, by recognising its certification only.
The CCP is of the view that although qualification requirements for certain posts is a globally recognised phenomenon, specifying a certain institution only in this case amounts to creating entry barriers for other educational institutions, and hence restricts competition.
Such a measure could retard incentives for quality improvement by the dominant player, and limits consumer choice both in cost and location.
The CCP has welcomed the decision of LSE to initiate the process of amending its regulations to address competition concerns.
Published in The Express Tribune, July 17th, 2010.
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