How to get Corporate Membership?

1 ANSWERS

1. Guest4807
   

   The Corporate Body applicant for membership must;
   
            1. be a company or a statuary corporation or a body corporate;
            2. have a minimum issued and paid-up capital of Rs. 20 million.
   
      2. In case of statuary corporation or a body corporate to which section 183 of the companies Ordinance 1984 applies; the membership application shall be accompanied by a "no objection" from the Federal or Provincial Government, as the case may be;
   
      3. The Nominee Director representing Corporate Membership must be a citizen of Pakistan. Such nominee shall not be a member of the Exchange, nor shall be a nominee of any other Corporate Member of the Exchange.
   
      4. At least two Directors of the corporate membership including the Chief Executive must have a minimum academic qualification of "Graduation".
   
         Provided that in the case of conversion of an individual to Corporate Membership the requirement of minimum qualification for the Chief Executive shall not apply, where the same individual member continues as Chief Executive of the Corporate Membership.
   
         (In case the Chief Executive of the Company is a member of the Exchange and the Nominee Director has the stock market experience of at least 5 years as an agent with any of the members of the Exchange may be allowed waiver of the academic qualification by the Board).
      5. In the case of an active member filing his/her/their transfer application/ nomination, such member shall also submit a bank guarantee or a guarantee by one of the existing members of the Exchange or a guarantee by the incoming member or any equivalent security in the manner as may be prescribed by the Exchange to the extent of Rs. 2.5 million valid for a period of 2 years from the date of transfer of membership in order to indemnify the Karachi Stock Exchange against all claims of replacement of shares received after the transfer of membership as per Rule 26(a) of Ready Delivery Contracts.
   
      6. The membership application shall be accompanied by an auditors certificate confirming that the company maintains a net capital balance/net assets value of at least Rs. 2,500,000/- (excluding the value of membership card).
   
      7. The qualification of nominee Director shall be his holding of qualification shares in the company to the extent provided under the Articles of the nominating corporate membership.
   
      8. 50% of the total number of Directors subject to a minimum of two Directors of the corporate membership, including the Chief Executive and Nominee, must have a minimum academic qualification of "Graduation".
   
         Provided that in the case of conversion of an individual to Corporate Membership the requirement of minimum qualification for the Chief Executive/Nominee shall not apply, where the same individual member continues as Chief Executive/Nominee of the Corporate Membership.
   
         (In case the Chief Executive of the Company is a member of the Exchange and the Nominee Director has the stock market experience of at least 5 years as an agent with any of the members of the Exchange may be allowed waiver of the academic qualification by the Board).
      9. The Chief Executive and Nominee Director must have at least 3 years stock market experience.
   
     10. In case the equity of the company is subscribed by foreign participants; No Objection Certificates from State Bank of Pakistan and Ministry of Finance; is to be furnished.

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