Karachi December 29 2021: PSX Proposed amendments to regulations in relation to changes in the definition of accredited individual investor eligible for trading in securities listed in Growth Enterprise Market (GEM) of PSX.
This is to inform the public that the PSX, in exercise of power conferred upon it u/s 7 of the Securities Act, 2015, is proposing to carry out amendments to PSX Regulations pertaining to the definition of accredited individual investor and its eligibility to trade in GEM companies.
Taking into consideration the concerns raised by some of the Securities Brokers and Pakistan Stock Brokers Association and subsequent deliberation held with them, PSX is proposing to make following amendments to PSX Regulations:
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- Definition of Accredited Investor is proposed to be amended as below:
a. An additional definition of Accredited Individual Investors is proposed to be specified, whereby an individual who holds securities in CDC worth PKR S million or more at the time of self-declaration should also be considered eligible to trade in GEM companies.
b. The existing definition of Accredited Individual Investors to have net assets of at least PKR 5 million is proposed to be replaced with total assets of same value.
- PSX Regulation 4.29 is proposed to be amended to empower PSX to notify the manner of determining eligibility of an Accredited Individual Investor. In this regard, self-declaration of eligibility by individual investors would be considered sufficient as a verifiable mean to trade in securities listed in GEM.
Additionally, following operational arrangements are being considered to be adopted by PSX:
- Any ineligible investor who has subscribed shares of company listed in GEM would be allowed one-time exit at his/her own risk, without any responsibility at Securities Broker end.
- Auto-marking of all those Accredited Investors would be done in National Clearing and Settlement System of NCCPL who participated in the IPO following due process of submitting self-declaration.
Recently two companies, Pak Agro Packaging Limited and Universal Network Systems Limited listed on PSX under GEM board.
