Regulatory Alerts2017-04-26
Added · Updated
Amendments to Stock Exchanges Regulations, 2012 regarding Offer for Sale and Self-Listing
The Securities and Exchange Commission of Pakistan inserts new Parts VIII and IX into the Stock Exchanges (Corporatisation, Demutualization and Integration) Regulations, 2012, establishing the framework for stock exchanges to offer for sale at least twenty percent of their blocked share capital and to self-list. The regulations mandate a book building process with specific allocation ratios, minimum bid sizes of three million rupees, and eligibility criteria for bidders, while imposing shareholding limits of thirty percent for foreign persons, five percent for financial institutions, and one percent for other persons. The Commission assumes the role of frontline regulator for these transactions, exercising powers typically held by the exchange, including approval of prospectuses, supervision of trading, and enforcement of listing obligations.