Listing Regulation Lahore Stock Exchange

8/3/2019 Listing Regulation Lahore Stock Exchange

1/21

LISTINGREGULATIONS

OF

LAHORESTOCKEXCHANGE

By

SalmanAliBokhari

AssistantManager,Risk&Clearing

1


2/21

ReasonsforListings

CompanieslistinStockExchangestoissuesharestoraisemoneyfrominvestors

Reasonfor

listings

Abilitytoattractgeneralpublicforfinancing

generalenjoyshigheresteemintheeyesofitsdebtorsandcreditors

LowerfinancingCost

Easierpledgingofsharesforshareholders

betterabilitytodealwithRegulatorsonissues

Easierfuture

financing

TaxincentivesforListedcompanies

2


3/21

ReasonsforMarkets

3

Anexchangeservesthreeprincipalfunctions:

EconomicFunction

ContinuousPricingFunction

FairPricingFunction

Capital

Savers Borrowers


4/21

4

PrimaryandSecondaryMarkets

Primarymarket

isthemarketwhereinvestorspurchasenewlyissued

securities. Initialpublicoffering(IPO): Aninitialpublicofferoccurs

whenacompanyoffersstockforsaletothepublicforthefirsttime.

Secondarymarket

isthemarketwhereinvestorstradepreviouslyissuedsecurities.

Aninvestorcantradethroughabrokerwhoarrangestransactionsforothers.


5/21

LSE

Listings

Overview

5


6/21

InstrumentslistedatLSE

OpenEnd

Fund

ClosedEnd

Fund Bonds

&

TFC

Future

Contracts Equity

Common

Stocks

Preference

Shares

6

Instrument No.of

CommonStock 511

PreferenceShares 5

TermFinanceCertificates 14

Open

End

Funds 86ClosedEndFunds 16


7/21

StatisticalComparisonofExchanges

7

Particulars LSE* KSE* ISE*

TotalNo.

of

Companies

listed511 651 261

ListedCapital

(Rs.inbillion)

728.331 781.794 608.420

MarketCapitalization(Rs.

inbillion)2,018.232 2,120.651 1,705.017

Annualturnover

AverageDaily

(Millionshares)

2,719.706

11.100

28,332.78

115.64

272.300

1.11

Securitieslistedduringthe

year(C|D|F|P)9

(2|2|4|1)

18

(8|1|9|0)

N/A

* As on June 30, 2009

C:Companies,D:Debt,F:Funds,P:PreferenceShares


8/21

BreakupofListedPaidupCapital

8


9/21

BreakupofMarketCapitalization

9


10/21

CoststoConsider

Advisor&ArrangertotheIssue

LegalAdvisortotheIssue

ComputerBalloter

&

Registrar

to

the

Issue

CommissiontoBankerstotheIssueandtheUnderwriters

BrokeragetotheMembersofStockExchange

Advertising,Printing

and

Publication

of

aProspectus

LSEinitiallistingfee&Annualfee

InitialListing:0.1%ofpaidupcapital

CentralDepository

Company

(CDC)

fee

10


11/21

FromListingtoDeListing

11


12/21

BookBuildingProcess

12


13/21

ListingProcess

13


14/21

ListingProcess(Contd)

14


15/21

Listing

Regulations

15


16/21

ListingRegulations

OnlycompanieslistedmaybetradedattheExchange

ListingRequirements

Memorandum

&

Articles

of

Association. Copiesofallmaterialcontractsandagreements

NamesofDirectorsalongwithdirectorshipofothercompanies

DraftProspectus/OfferforSale.

Auditors

Certificate,

separately

indicating

the

number

of

shares,

Auditedaccountsforthelast5years

CopiesoftheConsentLettersfrombankerstotheissue

Statementshowingthecostofprojectandmeansoffinance.

16


17/21

ListingRegulations

Stocks

Minimumpaidupcapitalnotlessthan200million

Offerof

shares

to

the

general

public

shall

not

be

less

than

Rs.100millionor25%ofthesharecapitalofthecompany,whicheverishigher.Issuermayallocate:

uptotwentypercentofthepublicoffertooverseasPakistanis.

uptofive

percent

of

the

public

offer

to

its

employees.

Modarabas

30%ofthetotalPaidupcapitalshallbesubscribedbythesponsorsortheirassociatesorfriends,relativesandassociated

undertakings

andthebalanceof70%shallbeofferedtoGeneralPublic

17


18/21

OnGoingCompliance

Dividends:Informationtobesenttoexchangepriortorelease

Communicationofpricesensitiveinformation

Sendingcopiesofannualreports21daysbeforemeetingofshareholders

Sendingcopiesofquarterlyaccounts

Annualmeeting

within

4months

of

closing

of

annual

financialyear

FurnishcertifiedcopiesofminutesofAGMandEOGMin60days

Complianceof

Code

of

Corporate

Governance

QualityofAudit

18


19/21

SUSPENSIONANDDEFAULTERS COUNTER

AlistedcompanymaybeplacedinDefaultersSegment,suspendedordelistedforanyofthefollowingreasons: (a)ifitssecuritiesarequotedbelow50percentoffacevalueforacontinuous

periodofthreeyears.

(b)iffromthreeyearsofthedateofformallisting,ithasnotstartedcommercialproductioninthecaseofamanufacturingcompanyorhasnotcommencedbusinessinthecaseofanyothercompany.

(c)ifithasfailedtoholditsannualgeneralmeetingforacontinuousperiodofthreeyears.

(d)if

it

has

gone

into

liquidation

either

voluntarily

or

under

court

order;

(e)ifithasfailedtopaytheannuallistingfeesasprescribedintheseregulationspayabletotheExchangeforaperiodof2yearsorpenaltyimposedundertheseregulationsoranyotherduespayabletothe Exchange;

(f)ifithasfailedtocomplywiththerequirementsofanyofthelistingregulations;

(g)if

the

company

for

any

reason

whatsoever

refuses

to

join

the CDS

after

its

securitieshavebeendeclaredeligiblesecuritiesbytheCDC.

19


20/21

Delisting

VoluntaryDelisting: AnycompanyintendingtoseekvoluntarydelistingfromtheExchangeshallintimatetotheExchange,immediately,oftheintention.Minimum

purchaseprice

proposed

by

the

sponsors

will

be

the

highestofthebenchmarkpricebasedonanyofthefollowing: MarketPrice

AverageMarket

Price

(Annualized)

Intrinsicvaluepershare(estimatednetrealizablevalueofassetsofthecompany)

EarningsMultiplierapproach(forprofitablecompanies)

The

maximum

price

at

which

the

Sponsors

had

purchased

these

sharesfromtheopenmarketintheprecedingoneyear.

20


21/21

THANKYOU

21

Listing Regulation Lahore Stock Exchange

Documents