The Stock Exchange Ordinance 1973 had which effect?

• A. It banned short selling on all listed stocks
• B. It required quarterly disclosure by all listed issuers
• C. Opening of any more stock exchanges was forbidden
• D. It created a central securities depository

Answer: (C)

The main idea tested is that this ordinance gave the government power to license stock exchanges and restrict entry, effectively creating a single-exchange regime. By requiring official permission to operate or establish new exchanges, it prevented the opening of additional stock exchanges, keeping the market structure under centralized control. This differs from actions like banning short selling, imposing quarterly disclosures, or setting up a central securities depository, which are separate regulatory or post‑trade infrastructure issues and not the defining effect of the 1973 ordinance.