The Governing Board of Directors of Karachi Stock Exchange (KSE), on the recommendation of the Companies Affairs/Corporate Governance Committee has decided to amend the prerequisite/eligibility criteria for inclusion of companies in KSE-30 and KMI-30 indices.
According to a notice issued on Friday, the KSE board has decided following amendment:
1. KSE-30 Index
The Pre-Requisite No 4.4 has been amended to read as "The company must have an operational track record of at least one financial year".
2. KMI-30 Index
One of the Eligibility Criteria under 1.2.1 has been amended to read as "The company must have an operational track record of at least one financial year".
The notice said that the Pre-Requisite/Eligibility Criteria have been amended in view of the fact that the index be broad-based and should reflect the market performance, since the primary objective of the indices is to have benchmark by which the stock performance can be compared over a period of time and therefore exclusion of companies simply on minor delays in compliance of the requirements of the Listing Regulations does not serve the objective and purpose of the constitution of a true market representative index.
In situation of any default, action against the companies be taken under the respective regulations through explanation and imposition of penalty for delay in compliance of the regulations, it added.