KARACHI (May 04 2005): The Karachi Stock Exchange (KSE) has announced a set of rules and regulations regarding listing of companies following approval of the Securities and Exchange Commission of Pakistan (SECP), making companies more accountable to the general public through increase in their participation and covering risk management measures.
The KSE on Tuesday posted rules related to listing companies elaborating different rules for issuers of listed securities following the approval of the stock market regulator. According to the regulation, in case capital of the company is up to Rs 500 million, at least 50 percent of such capital shall be offered to the public. In case it is beyond Rs 500 million, public offer shall be at least Rs 250 million or 25 percent of the capital whichever is higher.
The allocation of offer of share capital to overseas Pakistanis shall not exceed 20 percent of the public offer provided that in case of under-subscription in either of the categories, ie, the quota allocated to resident or non-resident Pakistanis, the unsubscribed portion will be allocated to applicants other category.
The allocation of shares to (1) sponsors in excess of 25 percent and (2) allocation of shares under pre-IPO placement including employees of company/group company, etc, should not be saleable for a period of six months from the date of public subscription.
No company will be listed under the Public Limited Company Ordinance or has been set up under statute unless its minimum paid-up capital is Rs 200 million.
No person shall be appointed as the company secretary of the listed company unless he is (a) member of recognised body of professional, accountants, or (2) member of a recognised body of a corporate chartered secretaries, (3) a person holding a master degree in business administration or commerce or being a law graduate from a university recognised by the Higher Education Commission and having at least two years relevant experience, provided that the person already engaged by a company as secretary before October 26, 2002 may continue in that capacity if he has an experience of not less than five years in that position.
Every company, which is proposed to be listed, shall at the time of public offering comply with the requirements of offer of shares to the general public as contained in the related listing regulations, unless the limit is relaxed by the stock exchange with the approval of the SECP