KARACHI: Pakistan Stock Exchange (PSX) has proposed ease in regulations regarding the listed companies’ defaulter list. The amendments in regulation are aimed to ensure the best interest of the shareholders and the investing public.
The proposed amendment will be applicable “Where the company has demonstrated improvement from the last reported progress towards the rectification of cause or causes of its non-compliance or non-compliances,” The notice issued by the front line regulator said. The relaxation may be granted for a maximum of 60 days at once, which may be extended based on these factors, it added.
As a front line regulator, PSX plays a vital role in ensuring the protection of investors in particular and all the stakeholders in general. PSX has to interact with different regulatory authorities and agencies, listed companies and TRE Certificate holders and take enforcement actions against the non-compliant regulated person to fulfil its responsibilities.
PSX considers it essential that PSX regulation should have an indemnification clause to protect its directors and officials in discharging their duties in good faith against any loss, claim, liability, damages, costs, charges, expenses etc., the notice said. PSX management has invited comments and feedback from all interested parties by April 12, 2021.