SECP allows foreign investors to buy PSX’s shares
They will be able to collectively acquire 10% of the issued shares
File photo PHOTO: EXPRESS TRIBUNE
KARACHI:
The Securities and Exchange Commission of Pakistan (SECP) has allowed foreign investors to buy, hold or trade ordinary shares in the Pakistan Stock Exchange (PSX), according to a notification issued on Friday.
For the purpose, the SECP has approved proposed amendments to the Stock Exchange (Corporatisation, Demutualization and Integration) Regulations, 2012.
SECP assures brokers of workable solution for PSX
“These amendments shall take effect from December 26, 2017,” the SECP said in a notification to the PSX dated December 21. PSX made the notification public on Friday.
PSX’s share closed at Rs18.33 hitting the upper price limit of Rs1 with a volume of 217,500 shares on Friday.
Last week, the SECP had proposed regulatory changes and invited public comments till December 19.
Stock market brokers, who have a 40% stake in the company (PSX), were long demanding that the regulator lift the ban on foreigners’ participation in its day-to-day trade, arguing that when they could trade in any listed company then why not in PSX shares.
The SECP has allowed foreign investors to collectively acquire or hold a maximum 10% of the issued shares and, if it finds it appropriate, the limit can then be expanded to 20%.
“In regulation (43) of the regulations, (a) Clause (i) shall be replaced with the following: “(i) foreign persons, other than foreign anchor investors, shall not collectively, whether directly or indirectly, acquire or hold more than ten per cent of the total issued share capital of the exchange.
“Provided that the Commission may, if it deems fit in the interest of capital markets, increase the limit of shareholding for foreign persons, other than foreign anchor investors, to 20% of the total issued share capital of the exchange,” the SECP said in the notification.
Earlier this year, a Chinese consortium acquired a 40% stake (320 million shares) at Rs28 per share in the PSX, which translated into around $85 million, through competitive bidding in January.
The PSX shares allowed to be bought, held or traded by foreigners would be the one available for trade at PSX and would be in addition to the one acquired by the Chinese consortium.
PSX set to attract more Chinese investment next year
During the outgoing calendar year, the PSX management sold another 20% (160 million shares) to the general public through book building. However, the PSX’s share price failed to go above the proposed floor price of Rs28.
Published in The Express Tribune, December 23rd, 2017.
The Securities and Exchange Commission of Pakistan (SECP) has allowed foreign investors to buy, hold or trade ordinary shares in the Pakistan Stock Exchange (PSX), according to a notification issued on Friday.
For the purpose, the SECP has approved proposed amendments to the Stock Exchange (Corporatisation, Demutualization and Integration) Regulations, 2012.
SECP assures brokers of workable solution for PSX
“These amendments shall take effect from December 26, 2017,” the SECP said in a notification to the PSX dated December 21. PSX made the notification public on Friday.
PSX’s share closed at Rs18.33 hitting the upper price limit of Rs1 with a volume of 217,500 shares on Friday.
Last week, the SECP had proposed regulatory changes and invited public comments till December 19.
Stock market brokers, who have a 40% stake in the company (PSX), were long demanding that the regulator lift the ban on foreigners’ participation in its day-to-day trade, arguing that when they could trade in any listed company then why not in PSX shares.
The SECP has allowed foreign investors to collectively acquire or hold a maximum 10% of the issued shares and, if it finds it appropriate, the limit can then be expanded to 20%.
“In regulation (43) of the regulations, (a) Clause (i) shall be replaced with the following: “(i) foreign persons, other than foreign anchor investors, shall not collectively, whether directly or indirectly, acquire or hold more than ten per cent of the total issued share capital of the exchange.
“Provided that the Commission may, if it deems fit in the interest of capital markets, increase the limit of shareholding for foreign persons, other than foreign anchor investors, to 20% of the total issued share capital of the exchange,” the SECP said in the notification.
Earlier this year, a Chinese consortium acquired a 40% stake (320 million shares) at Rs28 per share in the PSX, which translated into around $85 million, through competitive bidding in January.
The PSX shares allowed to be bought, held or traded by foreigners would be the one available for trade at PSX and would be in addition to the one acquired by the Chinese consortium.
PSX set to attract more Chinese investment next year
During the outgoing calendar year, the PSX management sold another 20% (160 million shares) to the general public through book building. However, the PSX’s share price failed to go above the proposed floor price of Rs28.
Published in The Express Tribune, December 23rd, 2017.