Thursday April 10 2025
News Source: Global Exchanges
Focus: Listing Rules
Type: General
Country: Pakistan
On 9th April 2025, the Securities and Exchange Commission of Pakistan (SECP) in collaboration with Pakistan Stock Exchange (PSX) proposed amendments to the PSX regulations to provide a framework and listing procedures for such listing avenue.
The proposed amendments aim to ensure greater transparency, enhanced disclosures and efficient price discovery mechanism so existing and potential investors can have access to adequate information for better informed decision making. The draft regulatory regime envisages that an unlisted company can only attain the privilege of listing through scheme of arrangement involving demerger of “Operating Business Segment” of a listed company into an unlisted company.
The amendments provide classification criteria for operating business segment according to which
- the operating business segment must be a business unit of a listed company that earns revenue and incurs expenses;
- it must be profitable in the last financial year; and
- revenue or assets of the operating business segment must account for 10% or more of total revenue or assets of the listed company.
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