The board of directors of Pakistan Stock Exchange (PSX) has proposed certain amendments to PSX Regulations and invited all concerns to provide written comments on the proposed amendments.
According to a PSX notice issued here on Thursday, all concerned can provide written comments on the proposed amendments either in hard form or through email.
The PSX board of directors has proposed the revaluation of assets of a company seeking voluntary delisting should not be older than three months instead of existing six months. The existing clause 5.13.1( c ) of PSX Regulations requires that the intrinsic value per share of a company seeking voluntary delisting shall be determined based on revaluation of assets to be carried out by the eligible professional evaluator. Such revaluation of assets should not be ordered that six months from the date of receipt of buy back application.
Considering the fluctuations in price of assets and to determine a more accurate intrinsic value of the company, PSX is proposing that revaluation of assets of a company seeking voluntary delisting should not be older that three months instead of existing six months. Further, the time period for revaluation of assets is proposed to be linked with the date of completion of documents instead of date of receipt of buy back application.
The PSX board of directors also proposed removal of requirement of obtaining Credit Information Bureau (CIB) Report of the applicant company, its chief executive, directors, sponsors/promoters, substantial shareholders, associated and group companies etc. while evaluating listing application.
Presently, PSX Regulations require PSX to assess credit worthiness of companies/issuers, its CEO, directors, sponsors, promoters, substantial shareholders and associate persons etc. through CIB report of SBP while evaluating listing application of such companies/issuers.
PSX does not have access to CIB reports of such persons due to the restriction imposed by the SBP in terms of section 25(A) of the Banking Companies Ordinance 1962, which specifies that the credit information is for specific purposes, confidential and cannot be published or disclosed. Hence, PSX is proposing to remove this requirement from its regulations.
"Pursuant to Section 7(3) of the Securities Act, 2015, PSX hereby invites the public to provide comments on the proposed amendments in relation to the above matters", the PSX notice said.
"All concerned are invited to provide written comments on the proposed amendment either in hard form or through email at [email protected] latest by Wednesday, September 05, 2018.
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