PSX issues ‘guidance notes’ on disclosure

The Pakistan Stock Exchange (PSX) has issued “guidance notes” for listed companies about the disclosure of material information and reporting obligations under the existing PSX regulations. The PSX notified the guidance notes — intended to provide “greater clarity and transparency” — at a time when many listed companies seemingly fail to timely inform the exchange about material information that sometimes causes an “unusual movement” in either the price or the volume of traded shares. For example, the PSX sought on July 7 (Friday) clarifications from two companies — LSE Proptech Ltd and Data Agro Ltd — regarding a substantial change in their share prices in June. The issued guidance notes deal with as many as 20 areas ranging from the closure of share transfer books to the powers of the exchange. With respect to the release of price-sensitive information, rumour, report containing sensitive information or unusual movement in the price or volume of a stock, the PSX reminded the listed companies to make a “full, fair and timely disclosure” of material information. It directed the listed companies to immediately disseminate any price-sensitive information through the Pakistan Unified Corporate Action Reporting System (PUCARS) before releasing it to any other person or print/electronic media.