Karachi: Pakistan Stock Exchange Limited (PSX) has announced a new initiative aimed at strengthening market liquidity and increasing investor participation, with the proposed introduction of minimum free-float requirements for all listed companies. This move aligns with the exchange's ongoing efforts to harmonize its regulatory framework with international standards.

The announcement, made on June 25, 2025, comes as part of PSX's strategy to enhance the market's efficiency and fairness. The Consultation Paper, issued by the exchange, details proposed measures to raise the minimum free-float requirements through amendments to the current regulatory framework. This initiative is expected to bolster stock liquidity, enable efficient price discovery, improve market depth, and attract greater participation from both retail and institutional investors.

According to information available from the Pakistan Stock Exchange (PSX), maintaining an adequate level of free-float is considered a global best practice for promoting fairness and efficiency in capital markets. The Consultation Paper sets out proposed minimum free-float thresholds based on market capitalization tiers, along with phased implementation timelines and ongoing compliance obligations for listed companies.

Stakeholders are invited to provide their feedback and suggestions on the Consultation Paper, which has been made available on the PSX website. Written responses can be submitted to the Listing Department via email at [email protected] by the close of business on July 04, 2025. This initiative by the PSX is categorized under the designated market category of regulatory changes and compliance.