Stock Exchange (Corporatization, Demutualization and Integration) Act, 2012
The Stock Exchange (Corporatization, Demutualization and Integration) Act, 2012 was enacted by Majlis-e-Shoora (Parliament). It received the assent of the President on 7th May, 2012. This Act may be called Stock Exchange (Corporatization, Demutualization and Integration) Act, 2012. It shall extend to the whole of the Pakistan. This Act provides for the development of the capital market of the country and of the stock exchange in Pakistan. It also facilitates the integration of these Stock Exchanges, and for matters ancillary thereto. After this Act was passed basic structure of the Stock Exchanges changed. Under this Act, the terms corporatization, demutualization and integration are defined. The word “corporatization” means the conversion of a stock exchange from a company limited by guarantee to a public company limited by shares. The word “demutualization” means the segregation of the majority ownership of a stock exchange from the right to trade on such stock exchange. The word “integration” means the merger of two or more stock exchanges. This act was subsequently amended by the Stock Exchange (Corporatization, Demutualization and Integration) (Amendment) Act, 2015.
