Regulatory Alerts2017-04-26
Added · Updated
Stock Exchanges (Corporatisation, Demutualization and Integration) Regulations, 2012
These regulations establish the legal framework for the corporatization, demutualization, and integration of stock exchanges in Pakistan, defining key terms such as 'anchor investor' and 'Exchange'. They set specific eligibility criteria for strategic investors, including a minimum net equity of Rs. 20 billion and operational history requirements, while mandating the issuance and transfer procedures for Trading Right Entitlement Certificates (TRECs). The document outlines the procedural steps for integrating stock exchanges, including the submission of schemes of integration and the subsequent status of transferor exchanges as public companies. Additionally, it provides transitional provisions for maintaining Investors’ Protection Fund trusts to safeguard claimants until new customer protection compensation funds are established under the Securities Act, 2015.