PSX mandates new disclosure requirements for cumulative shareholding

September 20, 2024 (MLN): The Pakistan Stock Exchange (PSX) has announced amendments requiring listed companies to additionally disclose the cumulative shareholding, including the number of shares and the percentage owned by relevant persons.

This requirement is in addition to the details currently mandated for dissemination through Form-29 of the Correspondence Manual of the Exchange, which is available in PUCARS.

The amended PSX Regulation 5.6.4 is reproduced below for ready reference with changes underlined

Where any director, CEO, substantial shareholder or executive of a Listed Company or their spouses sell, buy or take any beneficial position, whether directly or indirectly, in shares of the Listed Company of which he/she is a director, CEO, substantial shareholder or executive, as the case may be, he/she shall immediately notify in writing to the Company Secretary.

Such director, CEO, substantial shareholder or executive, as the case may be, shall also deliver a written record of the price, number of shares, form of share certificates, (i.e., whether physical or electronic into Central Depository System), nature of transaction and cumulative number of shares owned to the Company Secretary within seven days of effecting the transaction.

The Company Secretary shall immediately forward the same, along with cumulative shareholding in terms of percentage owned, to the Exchange for its dissemination to all concerned.

The notice of the director, CEO, substantial shareholder or executive, as the case may be, shall also be presented by the Company Secretary at the meeting of the board of directors immediately subsequent to such transaction.

In the event of default by a director, CEO or executive to give a written notice or deliver a written record, the Company Secretary shall place the matter before the board of directors in its immediate next meeting.

Consequently, the requisite changes along with the necessary system development have been made and the same were notified, among changes in other Forms.

Accordingly, all listed companies are required to ensure meticulous compliance.

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