RegAlert2017-04-26
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.
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# GOVERNMENT OF PAKISTAN
## SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN
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**Islamabad, the 26th April, 2017**
## NOTIFICATION
**S.R.O. 286 (I)/2017.** - In exercise of its powers conferred under section 23 of the Stock Exchanges (Corporatisation, Demutualization and Integration) Act, 2012 (Act No. XV of 2012) the Securities and Exchange Commission of Pakistan hereby makes the following amendments to the Stock Exchanges (Corporatisation, Demutualization and Integration) Regulations, 2012, namely:
In the aforesaid Regulations, the following new Parts VIII and IX shall be inserted after the existing Regulation 41:
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## PART - VIII
### Offer for Sale of Shares
**42. Time and manner of offer for sale of shares lying in the blocked account.**
(1) The board of directors of the Exchange shall determine the time within which not less than twenty percent of total issued share capital out of shares of the Exchange lying in the blocked account shall be offered for sale.
(2) The offer for sale of shares lying in the blocked account shall be made in accordance with applicable provisions of the Act, the Securities Act, 2015, the Companies Ordinance and applicable rules and regulations framed thereunder, unless otherwise provided in these regulations or as may be notified by the Commission.
(3) The allocation of shares under the book building portion shall be seventy five percent of the offer size and the remaining twenty five percent shares shall be allocated to the retail portion.
(4) The bidders in book building shall bid for hundred percent of the offer size. The strike price shall be the price at which hundred percent of the offer size is subscribed. However, the successful bidders shall be allotted only seventy-five percent of the offer size and the remaining twenty-five percent shares would be offered to the retail investors.
(5) The bidders shall give an undertaking along with the bid application that they would subscribe to the shares remaining unsubscribed by the retail investors, if any. Their balance bid money would remain in the book building account with the banker to the book building portion till allotment of unsubscribed shares, if any, of the retail portion to them on pro-rata basis.
(6) In case the retail portion is fully subscribed, the balance bid money shall be immediately refunded to the successful bidders.
(7) The retail portion of the offer may not be underwritten.
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Amended 1 time · last 2017-04-26
Source: Securities and Exchange Commission of Pakistan — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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