93 stock brokers file Rs 500m lawsuit against PSX board

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As many 93 brokers/Trading Right Entitlement Certificate (TREC) holders of Pakistan Stock exchange (PSX) have filed a civil suit in the High Court of Sindh against PSX for declaration, damages amounting to Rs 500 million and permanent injunction.

In the suit, the plaintiffs have challenged the revision in I.T. Service Charges, which were approved by the Board and the Securities and Exchange Commission of Pakistan. These charges were notified by PSX’s notice dated June 04, 2018 and have become effective from July 01, 2018.

Also Read: PSX Index sheds 237 points on selling pressure

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First hearing of the injunction application was held today at Sindh High Court and the Court kindly allowed PSX’s legal counsel to present its view at the very first hearing. The Court did not grant interim injunction as requested by the plaintiffs and plaintiffs, who have not yet selected the packages offered by PSX, were asked to deposit IT charges at revised rates with the Nazir of Court to the extent of the amount that has been enhanced.

The pre-revision charges will continue to be paid to PSX and the ten Plaintiffs who have already selected the relevant package will continue to pay the full amount of the revised IT charges to PSX.

The Exchange considers this action of brokers/TREC holders as groundless and frivolous and intends to vigorously defend its decision in the Court of Law, said Muhammad Rafique Umer , Company Secretary at PSX.

(This news/article originally appeared in Daily Times on September 18th, 2018)

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