Pakistan Stock Exchange (PSX), on Tuesday, removed restrictions on foreign investors for the purchase of shares listed on PSX.
Considering the current combined position of Foreign Investors (other than foreign anchor investors) in PSX shares, it has been decided to allow the purchase of 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.
Previously in June, PSX had put restrictions on the purchase of PSX shares by foreign investors.
Foreign investors, other than foreign anchor investor, had been restrained from collectively – directly or indirectly purchasing PSX shares. The aggregate position limit of foreign investors, other than foreign investor anchors, in PSX shares has almost reached 10 percent of the total issued share capital of 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.
Back in December 2017, The Securities and Exchange Commission of Pakistan (SECP) had allowed foreign investors to buy, hold or trade ordinary shares in the PSX. For the purpose, the SECP had approved proposed amendments to the Stock Exchange (Corporatisation, Demutualization and Integration) Regulations, 2012.
The SECP had 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.