KARACHI: 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.

Material events such as a temporary shutdown of plants and a suspension of core business operations should not be withheld for its disclosure in forthcoming financial statements, it said.

The guidance notes said a company’s director, CEO, substantial shareholder or executive or their spouses must immediately inform their company secretary about any trades in the shares of that company.

The company secretary is then required to immediately disseminate to the exchange the same information through PUCARS and place all details of the transactions at the subsequent meeting of the board of directors.

Similarly, all listed companies must disseminate their financial results immediately upon the conclusion of their board meetings. In case the board meeting was not concluded during PUCARS hours, the disclosure must be made the next working day during the pre-open session, which is from 9:15am to 9:30am on Monday-Thursday and from 9am to 9:15am on Friday.

The guidance notes said listed companies must hold at least one corporate briefing session (CBS) every year. The PSX encouraged companies to hold CBS more frequently to foster communication, build relationship, enhance investor confidence and help address investors’ queries and concerns.

However, listed companies must not disseminate any information during CBS that is prohibited under the applicable rules and regulations, it warned.

Published in Dawn, July 9th, 2023