January 31, 2023 (MLN): Pakistan Stock Exchange (PSX) on Monday proposed amendments to its regulations and invited public comments in relation to the proposed amendments, a notice issued by the bourse showed.
In a notice, PSX said that in the exercise of the power conferred upon it u/s7 of the Securities Act, 2015, it is proposing to make amendments to its Regulations In relation to the matters pertaining to revamping defaulters' segment and reverse merger regulation.
"With an aim to protect the rights and interests of minority shareholders, facilitate the revival of the companies quoted in the Defaulters' Segment and provide an exit opportunity to shareholders of the companies, PSX is proposing to amend its Regulations relating to the placement of companies in the Defaulters' Segment, suspension of trading and delisting," the notice read.
Accordingly, the existing Defaulters' Segment is proposed to be restructured in the following two segments for better transparency and classification of non-compliant listed companies:
(1) Non-Compliant Companies' Segment, and (1) Winding-up Segment.
Meanwhile, the removal of certain events leading to the placement of companies in the Defaulters' Segment has also been proposed.
Pertaining to reverse merger regulation, the notification added, "PSX believes that Reverse Mergers can play an important role in the revival of the companies particularly those placed in the Defaulters Segment."
As part of its efforts to promote the revival of unhealthy companies and put in place a conducive regulatory environment, PSX has revisited its existing reverse merger regulations and proposes to bring key amendments.