Pakistan launches a new initiative for the Foreign Investors
ISLAMABAD - Pakistan launches a new initiative for the Foreign Investors for holding Pakistan Stock Exchange Shares.
The Securities and Exchange Commission of Pakistan (SECP) has revised the applicable limit on foreign persons or institutions for acquiring or holding of Pakistan Stock Exchange (PSX) shares, under the Stock Exchange (Corporatisation, Demutualisation, and Integration) Regulation 2012.
The new limit is 20%.
Earlier, the limit of shareholding was 10% for foreign persons. Also, it may be mentioned that, as per SECP requirement, it is mandatory for a foreign person to disclose if they have 1% holding of PSX shares or for a foreign institution to disclose if they have 2.5% holding of PSX shares.
The SECP has advised PSX and Central Depository Company (CDC) to coordinate on the above announcement and put in place a mechanism and system that can allow for the said increase in the shareholding limit of PSX shares by foreign persons or institutions.
The decision will bode well for PSX’s trading as the investment will increase due to this step.