September 11, 2018 (MLN): Pakistan Stock Exchange (PSX), on Tuesday, removed its restrictions on the purchase of shares of PSX listed on PSX (Pakistan Stock Exchange Limited) by foreign investors as cushion has been created with regard to the 10% limit on the aggregate position of foreign investors in PSX shares.
All foreign investors would now be able to purchase PSX shares across any market of the Exchange up to 10% of the total outstanding shares, until further notification.
PSX had previously, on June 26 of this year, placed restrictions on the purchase of shares on the country’s stock exchange by foreign investors as the aggregate position limit of Foreign Investors (other than foreign anchor investors) in PSX shares had reached the threshold of 10% of the total issued share capital of the Exchange.
Regulation 43(i) of Stock Exchanges (Corporatization, Demutualization & Integration) Regulations 2012 disallows foreign persons to collectively acquire/hold, whether directly or indirectly, more than 10% of the total issued share capital of the Exchange. They are however, under the regulations, permitted to sell their positions in PSX if so desired.
