April 22, 2025 (MLN): The Pakistan Stock Exchange (PSX) has revealed the selection criteria for the Top 25 Companies for the years 2024 and 2025 to portray its commitment to transparency, corporate governance, and investor confidence.
According to the newly released notice, listed companies must meet certain prerequisites to qualify, including a minimum listing history of one financial year, a minimum 30% dividend declaration (with at least 15% as cash dividend), and active trading on at least 75% of the total trading days in a year.
Furthermore, companies should not be in the Non-Compliant Segment, should have no regulatory violations, and must have conducted timely elections for their board of directors.
Once these prerequisites are met, companies will be evaluated on a detailed set of quantitative and qualitative measures. Financial ratios such as return on equity, net profit margin, liquidity ratios, and dividend payout ratio will play a significant role in scoring.
Additionally, factors like corporate social responsibility, reporting on sustainable development goals (SDGs), enterprise risk management, diversity & inclusion, and corporate governance practices will be considered in the final ranking.
The criteria emphasise transparency and investor relations, rewarding companies for timely financial disclosures, dividend payments, and corporate briefings.
Firms with strong governance frameworks, sustainability initiatives, and diversity reporting will have an edge in the selection process.
