LAHORE: In an emergent meeting of the Pakistan Stock Exchange (PSX), the board considered and accepted Hussain Lawai’s resignation as PSX Board chairman with immediate effect.
Earlier, Securities and Exchange Commission of Pakistan (SECP) had directed PSX vide direction dated July 10, 2018, to immediately remove Hussain Lawai as PSX Board of Directors Chairman.
The SECP issued the direction considering facts that a First Information Report (FIR) dated July 6, 2018, had been registered by the Federal Investigation Agency (FIA) under Pakistan Penal Code read with Prevention of Corruption Act, 1947, and the Anti-Money Laundering Act, 2010. The said FIR, among other individuals, also nominated Lawai as one of the accused, and the FIA had arrested him for further investigation.
Earlier, the board held a meeting to address the situation, however, concluded that any action regarding Lawai should be kept suspended since no directives had been received from SECP.
The board also noted that FIA proceedings against Lawai had no relation to PSX and pertained to an unresolved problem with another bank. PSX rules do not stop an individual from holding office till the person is convicted or resigns; hence no action was required, according to the board.
Consequently, following the resignation the position of PSX Board chairman has been vacated and the new chairman is expected to be elected in the next board meeting.