Karachi: In a significant regulatory update, the Pakistan Stock Exchange (PSX), endorsed by the Securities and Exchange Commission of Pakistan (SECP), has introduced amendments requiring listed companies to disclose more detailed shareholding information.

Effective from October 26, 2023, following PSX Notice No. PSX/N-1095, the amendment pertains to Clause 5.6.4 of PSX Regulations. This updated clause mandates that all listed companies must now disclose not only the transaction details via Form-29 of the Correspondence Manual available in PUCARS, but also the cumulative number of shares and the percentage ownership held by key insiders, which includes directors, CEOs, substantial shareholders, and executives, as well as their spouses.

According to information available from the Pakistan Stock Exchange (PSX), this change aims to enhance the transparency of financial dealings within public companies by providing a clearer picture of the extent of insider shareholdings in real-time. The regulation specifies that any such insider who engages in buying, selling, or otherwise transacting company shares must promptly notify the company secretary of their actions. The detailed notification should include the price, number of shares, whether the shares are held physically or electronically, and the nature of the transaction.

Moreover, the company secretary is responsible for forwarding this cumulative shareholding information to the PSX, ensuring that it is disseminated to the public promptly. This disclosure must also be presented at the next board of directors meeting following the transaction.

In cases where a director, CEO, substantial shareholder, or executive fails to provide this mandatory notification, the company secretary must report this non-compliance at the next board meeting. The aim is to uphold rigorous governance standards and ensure all market participants are well-informed about significant insider movements in share ownership.

These regulatory enhancements were accompanied by updates to Form 29 and necessary system upgrades, as indicated by PSX Notice No. PSX/N-913, dated September 16, 2024. All listed companies are now obliged to adhere strictly to these revised reporting standards to maintain market integrity and investor confidence.