ISLAMABAD – Pakistan launches a new initiative for the Foreign Investorsfor holding Pakistan Stock Exchange Shares.
The Securities and Exchange Commission of Pakistan (SECP) has revised theapplicable limit on foreign persons or institutions for acquiring orholding 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, itmay be mentioned that, as per SECP requirement, it is mandatory for aforeign person to disclose if they have 1% holding of PSX shares or for aforeign institution to disclose if they have 2.5% holding of PSX shares.
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The SECP has advised PSX and Central Depository Company (CDC) to coordinateon the above announcement and put in place a mechanism and system that canallow for the said increase in the shareholding limit of PSX shares byforeign persons or institutions.
The decision will bode well for PSX’s trading as the investment willincrease due to this step.
