SECP increases share holding limit for foreigners or foreign institutions
1 min read
KARACHI: The Securities and Exchange Commission of Pakistan (SECP) Saturday announced increasing the limit applicable on foreign persons or institutions for acquiring or holding of Pakistan Stock Exchange (PSX) shares under the Stock Exchange (Corporatisation, Demutualistaion, and Integration) Regulation 2012.
As per this announcement, the limit of shareholding of PSX shares by foreign persons or institutions has been increased to 20 per cent of the total issued share capital of PSX.
Earlier, the limit of shareholding was 10 per cent for foreign persons which has now been increased to 20 per cent.
Also, it may be mentioned that, as per SECP requirement, it is mandatory for a foreign person to disclose if they have 1 per cent holding of PSX shares or for a foreign institution to disclose if they have 2.5 per cent holding of PSX shares.
The SECP has advised PSX and Central Depository Company (CDC) to coordinate on the above announcement and put in place a mechanism and system that can allow for the said increase in shareholding limit of PSX shares by foreign persons or institutions.
About The Author
