Karachi, The Pakistan Stock Exchange Limited (PSX) has proposed amendments to its regulations regarding the submission of annual free-float certificates by listed companies. The current requirement under PSX Regulation 5.7.2 (b)(ii) mandates that listed entities submit their annual free-float certificates, verified by an auditor, alongside their annual audited financial statements. The proposed changes aim to offer more flexibility by allowing the submission of these certificates within 120 days following the financial year's close.

This adjustment is designed to ease the operational burdens on listed companies while maintaining the integrity and transparency of market-related information. The proposed amendment does not alter the requirement for companies to enter their free-float information into the CDC free-float functionality on a quarterly basis, which is essential for the exchange to access and break down the number of free-float shares.

In compliance with Section 7(3) of the Securities Act, 2015, PSX is inviting written comments from listed companies, stakeholders, and the public regarding the proposed regulatory changes. Feedback on the proposed amendment, detailed in Annexure A, must be submitted by March 7, 2024, following the guidelines provided in the 'Guidelines for Submission of Comments.'

The rationale behind the proposed amendment is to offer listed companies additional leeway in managing their regulatory requirements without compromising the quality and timeliness of information available to investors and the market at large. The Central Depository Company (CDC) will continue to notify PSX regarding any late or non-submission of quarterly free-float information by listed companies, ensuring compliance and necessary regulatory actions as outlined in the PSX Regulations.