20000129

RECORDER REPORT

KARACHI: First Al-Noor Modarba has agreed to return 0.6 million shares of Shahmurad Sugar Mills bought from the family members of the directors of the company.

The Karachi Stock Exchange (KSE) appreciates the timely action taken by the Securities and Exchange Commission of Pakistan in the matter of First Al-Noor Modaraba for reversing the transaction of 0.6 million shares of Shahmurad Sugar Mills Limited from family members of Modaraba Management Company.

According to the press release of the exchange, First Al-Noor Modaraba invested Rs 11.058 million for purchase of 0.6 million shares of Shahmurad Sugar Mills, an associated undertaking. Consequently the price of shares of Shahmurad Sugar Mills Limited rose from Rs 13 to Rs 19 percent share within 10 days in January, 1998 (with negligible trading).

The Modarba purchased 0.6 million shares at a price of Rs 18.25, which information was provided by the KSE to the Registrar of Modarabas.

After detailed investigation, the Registrar reached the conclusion that the transactions were not at arms length and accordingly issued directions to undo the transaction.