The Securities and Exchange Commission of Pakistan (SECP) is planning to revise shareholding limit for foreigners in Pakistan Stock Exchange Limited, proposing that foreign persons shall not collectively, acquire or hold more than 10 percent of the total issued share capital of the exchange.
The SECP has proposed amendment to the Stock Exchanges (Corporatisation, Demutualization and Integration) Regulations, 2012 through an SRO (1)/2017 issued here on Tuesday. At present, under the existing regulations, foreign persons shall not collectively directly or indirectly acquire or hold more than 30 percent of the total issued share capital of the Exchange.
Now the SECP has proposed that foreign persons, other than foreign anchor investor, shall not collectively, whether directly or indirectly, acquire or hold more than ten percent 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 investor, to twenty percent of the total issued share capital of the Exchange, the SECP proposal added.
Followings is the text of the SRO (1)/2017 issued here on Tuesday: In exercise of the powers conferred by section 23 of the Stock , Exchanges (Corporatisation, Demutualization and Integration) Act, 2012 (XV of 2012L the following amendments in the Stock Exchanges (Corporatisation, Demutualization and Integration) Regulations, 2012 proposed to be made by the Securities and Exchange Commission of Pakistan (the Commission) are hereby published for information of all persons likely to be affected thereby and notice is hereby given that objections or suggestions thereon, if any, may be sent to the Commission within seven days of placement of the draft amendments on the website of the Commission, namely: -
In regulation (43) of the aforesaid Regulations,-
(a) Clause (i) shall be replaced with the following:
"(i) foreign persons, other than foreign anchor investor, shall not collectively, whether directly or indirectly, acquire or hold more than ten percent 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 investor, to twenty percent of the total issued share capital of the Exchange."