Karachi: The Securities and Exchange Commission of Pakistan (SECP) has proposed critical revisions to the Pakistan Stock Exchange (PSX) regulations concerning the listing of companies under the Scheme of Arrangement, following a thorough review process. These amendments, initially announced by PSX via Notice No. PSX/N-985 on October 7, 2024, were subjected to a public comment period as mandated by Section 7 of the Securities Act, 2015.
The proposed amendments were originally designed to institute compliance conditions for companies attaining listing status through the Scheme of Arrangement, ensuring they align with the standards set for companies applying via Initial Public Offerings. After the public consultation period concluded and the PSX Board granted its approval, the amendments were sent to SECP for further consideration.
In the latest development, SECP has introduced a significant stipulation to the PSX regulations. According to the proposed changes, "no unlisted company can list or attain the listing status through the Scheme of Arrangement, except in case of demerger of Operating Business Segment of a listed company into an unlisted company and shares of unlisted company are issued to the shareholders of the listed company."
According to information available from the Pakistan Stock Exchange (PSX), the revised amendments are now being disseminated for further review. Stakeholders and interested parties are encouraged to examine these changes, which are detailed in Annexure A, and submit their written comments by April 16, 2025. Submissions should follow the specified procedures outlined in the 'Guidelines for Submission of Comments,' attached as Exhibit A.
This initiative forms part of a broader regulatory framework aimed at refining the processes and conditions under which companies can achieve listing status on the PSX, a prominent player in the designated market category. The SECP's involvement underscores the regulatory body's commitment to maintaining the integrity and transparency of the stock exchange's operations.