KARACHI: The Pakistan Stock Exchange (PSX) on Tuesday announced that it has put restrictions on purchase of PSX shares by foreign investors.
From now, foreign investors, other than foreign anchor investor, have been restrained from collectively – directly or indirectly purchase PSX shares.
Senior Manager Operations at PSX, Naveed Akber Raja said the aggregate position limit of foreign investors other than foreign investor anchors in PSX shares has almost reached 10 percent of total issued share capital of Exchange.
Thus, further purchase of the PSX shares by foreign investors will not be allowed across any market of Exchange in terms of Regularization 43(i) of Stock Exchange (corporatisation, demutualization and integration) Regulation 2012 which disallows foreignpersons to collectively acquire /hold whether directly or indirectly more than 10 percent of total issued share capital of the Exchange, however foreign investors will be informed as and when any cushion is created for purchase of shares by foreign investors, added Raja.
Earlier, The Securities and Exchange Commission of Pakistan (SECP) allowed foreign investors to buy, hold or trade ordinary shares in the PSX. For the purpose, the SECP has approved proposed amendments to the Stock Exchange (Corporatisation, Demutualization and Integration) Regulations, 2012.
The SECP has allowed foreign investors to collectively acquire or hold a maximum 10 percent of the issued shares and, if it finds it appropriate, the limit can then be expanded to 20 percent.
