KARACHI: The Board of Directors of Pakistan Stock Exchange has proposed certain amendments to PSX Regulations under which it is recommended removal of requirement of determining credit worthiness through State Bank of Pakistan (SBP) of a company and its top officials while evaluating listing application.
In a notification issued on Wednesday by PSX, it invited public comments on the proposed amendments to PSX Regulation.
The PSX board suggested removal of requirement of obtaining Credit Information Bureau (CIB) Report – of State Bank of Pakistan (SBP) – of the company, its chief executive, directors, sponsors/promoters, substantial shareholders, associated and group companies etc. while evaluating listing application.
Presently, PSX Regulations require PSX to assess credit worthiness of companies/issuer , its CEO, Directors, Sponsors, Promoters, Substantial Shareholders, and Associated Persons etc. through CIB report of SBP while evaluating listing application of such companies/issuers.
“PSX does not have access to CIB reports of such persons due to the restriction imposed by the SBP in terms of Section 25(A) of the Banking Companies Ordinance, 1962, which specifies that the credit information is for specific purposes, confidential and cannot be published or disclosed. Hence, PSX is proposing to remove this requirement from its Regulations,” it added.
It is also recommended that the revaluation of assets of a company seeking voluntary delisting should not be older than three months instead of existing six months. The existing PSX Regulation required that the intrinsic value per share of a company seeking voluntary delisting shall be determined based on revaluation of assets to be carried out by the eligible professional evaluator. Such revaluation of assets should not be older than six months from the date of receipt of buy back application.
“Considering the fluctuation in price of assets and to determine a more accurate intrinsic value of the company, PSX is proposing that revaluation of assets of a company seeking voluntary delisting should not be older than three moths instead of existing six months,” according to the notification. Further, the time period for revaluation of assets is proposed to be linked with the date of completion of documents instead of date of receipt of buy back application.
The PSX said that all concerned are invited to provide written comments on the proposed amendments by September 05, 2018.