3601/2018 Const. P. Pakistan Stock Exchange (Petitioner) V/S Sindh and Others (Respondent)

3601/2018 Const. P. Pakistan Stock Exchange (Petitioner) V/S Sindh and Others (Respondent) Sindh High Court

Bench: Hon'ble Chief Justice Mr. Justice Muhammad Shafi Siddiqui(Author), Hon'ble Mr. Justice Mahmood A. Khan Order Date: 27-JAN-22

Stock Exchange is a commercial organization and is engaged in a business of providing services for the trading of securities. As per definition of the term Stock Exchange it is a market place where facilities for trading of securities are provided. The surplus (receipts over expenses) is distributed regularly as dividend amongst the shareholders. Its shareholders taking part in trading activities as brokers derive profit. Even before demutualization the members of stock exchange were entitled to trading on stock exchange and were also provided services as brokers; they have established their offices and solicit business and use their membership for earning income therefore economic and commercial activities were the core activities of the erstwhile members and also the present TRE holders (trading right entitlement). Stock exchanges entertain applications from individuals and corporate entities to issue them such trading certificates for their economic/business activity. The stock exchange lacks the important attribute of lack of commerciality of a members club for application of the doctrine of mutuality