Pakistan Stock Exchange issues notice under the Securities Act, requiring disclosure of any price-sensitive information behind the unusual trading activity.
KARACHI: The Pakistan Stock Exchange (PSX) has issued a notice to itself after detecting unusual movement in the price of its own shares, seeking clarification in line with regulatory requirements applicable to all listed companies.
In a notice addressed to the Company Secretary of PSX, the exchange cited Section 97 of the Securities Act, 2015 and Clause 5.6.3 of the PSX Regulations, which require listed companies to promptly disclose any material information that may explain unusual movements in the price or trading volume of their securities.
The exchange said an unusual movement had been observed in the price of PSX shares during the preceding period, triggering the requirement for an official clarification.
Disclosure required under regulations
Under the applicable regulations, the listed company is required to either:
• disclose details of any matter or development that may have contributed to the unusual movement in its share price or trading volume; or
• confirm that it is not aware of any such matter or development.
The notice also reminded the company that any material or price-sensitive information likely to influence the price or trading volume of its shares must be disseminated immediately through the Pakistan Unified Corporate Action Reporting System (PUCARS) in accordance with Clause 5.6.1 of the PSX Regulations.
Clarification to be shared with investors
The exchange has been directed to provide sufficient information explaining the reasons, if any, behind the unusual movement in its share price and to make the required disclosure through PUCARS for the benefit of shareholders and the investing public.
Such disclosures are intended to ensure that investors have access to timely and accurate information that could affect investment decisions.
Routine regulatory practice
Market experts noted that notices seeking clarification over unusual price or trading activity are a routine feature of market surveillance and are issued whenever significant movements are detected in the shares of listed companies.
The objective is to promote transparency, prevent the spread of rumours or misinformation, and maintain investor confidence by determining whether the movement is linked to material corporate developments or is driven solely by market speculation.
The latest notice is unusual in that it concerns the Pakistan Stock Exchange’s own shares, highlighting the exchange’s obligation to apply the same disclosure standards to itself as it does to all other listed companies.