Regulatory Alerts2016-10-03
Added · Updated
Stock Exchanges (Corporatisation, Demutualization and Integration) Regulations, 2012
The Securities and Exchange Commission of Pakistan establishes regulations governing the demutualization and integration of stock exchanges, including specific criteria for approving strategic investors and anchor investors. The rules mandate a minimum net equity of Rs. 20 billion for strategic investors, require the issuance of Trading Right Entitlement Certificates (TRECs) to initial shareholders, and prescribe the blocking of sixty percent of shares pending divestment. Additionally, the document outlines procedures for integrating stock exchanges, defining the transition of TRE holders, the cessation of transferor exchanges as stock exchanges, and the maintenance of Investors’ Protection Fund trusts during the transitional period.