PSX bars foreign investors from buying its shares

The Pakistan Stock Exchange (PSX) has barred all TREC Certificate holders and brokers on purchase of PSX shares by foreign companies.

“It is to inform that the aggregate position limit of foreign investors (other than foreign anchor investors) in PSX shares has almost reached threshold of 10 percent of total issued share capital of Exchange,” PSX said in a press statement on Friday.

The stock exchange stated that further purchases of PSX shares by foreign investors will not be allowed across any market of the Exchange in terms of Regulations 43(i) of Stock Exchanges (Corporatization, Demutualization and Integration) Regulations, 2012 which disallows foreign persons to collectively acquire/hold, whether directly or indirectly, more than 10pc of total issued share capital of the Exchange.

However, foreign investors will be allowed to sell their position in PSX, if they desire, the statement reads. The market will be informed as and when any cushion is created for purchase of shares by foreign companies.