In 2000, LSE froze accounts following an unprecedented market crash, resulting in a two-day closure and a one-day trading suspension.

[3] The crisis allegedly began when LSE members working for investor Nisar Danka exceeded their exposure limits and failed to settle their clearings.

[3] Subsequently, Mian Nisar filed a damages suit under the Central Depository Act, 1979, against the LSE, Central Depository Company (CDC), and the Securities and Exchange Commission of Pakistan (SECP), claiming illegal sale of his shares by the LSE.

[3] On 18 December 2006, Justice Jawwad S. Khawaja, in a single bench decision, held the LSE and CDC liable for damages to Mian Nisar Elahi.

[3] In 2014, the Federal Investigation Agency (FIA) uncovered an alleged illegal hundi and hawala operation run by dealers at the Lahore Stock Exchange.