PSX proposes amendments into rulebook

KARACHI: Pakistan Stock Exchange (PSX) on Thursday proposed amendments into its rule book to bring it in conformity with the international standards to curb money laundering and countering financing terrorism.

The regulatory affairs committee of PSX proposed to carry out amendments to PSX regulations pursuant to promulgation of Securities and Exchange Commission of Pakistan (Anti Money Laundering and Countering Financing of Terrorism) Regulations 2018.

“The securities brokers shall comply with the requirements as specified in the Securities and Commission of Pakistan (Anti Money Laundering and Countering Financing of Terrorism) Regulations 2018 framed by the commission and as amended from time to time,” the bourse said in a statement.

In June, the SECP unveiled new regulations to avert actions by the Financial Action Task Force for a failure to curb money laundering. Analysts said the commission also asked PSX management to update its rule book and eliminate loopholes that could give illegal funds a parking avenue.

“The proposal is to bring the rule book in conformity with the contemporary standards on AML/CFT,” an analyst said, requesting anonymity.

PSX proposed “consequential amendments to replace the provisions pertaining to repealed KYC (know your customer) and CDD (customer due diligence) guidelines presently contained under PSX regulations with AML and CFT regulations”. The bourse also sought imposition of certain conditions and requirements on a long-suspended listed company prior to resumption of trading in its shares.

“…PSX in line with international practices is proposing to impose certain conditions and requirements on the company prior to resumption of trading in its shares which remained suspended for 180 days or more,” the bourse said in the statement, seeking feedbacks from the stakeholders. “PSX may impose any one or more of such conditions depending upon the cause of suspension and prevailing circumstances.”

PSX also proposed to incorporate an event of delay or default by an issuer on its debt obligations in the definition of price-sensitive information and require such issuer to immediately disclose such event to PSX as per the practice followed for dissemination of price sensitive information.