KSE amends rules for OTC market

KARACHI: Karachi Stock Exchange (KSE) has introduced amendments in its regulations governing “over the counter (OTC)” market.

KSE made the amendments with the prior approval of Securities & Exchange Commission of Pakistan (SECP) under the sub-section (1) of Section 34 of the Securities & Exchange Ordinance 1969.

The amendments are as follows

i) the securities listed should be traded through KATS under T+2 settlement system or any other counter subject to the clearing and settlement procedures.

ii) The chairman of a listed company shall ensure that minutes of the meeting of the board of directors are appropriately recorded. The minutes of the meeting shall be circulated to directors and officers entitled to attend board meetings within 14 days of the date of the meeting.

iii) All listed companies shall ensure that second quarterly financial settlements are subjected to a limited scope review by the statutory auditors in such a manner and according to such terms and conditions as may be determined by Institute of Chartered Accountants of Pakistan and approved by SECP.

iv) All listed companies shall in the form and manner specified by the commission ensure that annual audited financial statements are sent to every member of the company at least twenty-one days before the annual general meeting is to held to consider the same.

v) No listed company shall circulate its financial statements unless the CEO present the financial statements, duly endorsed under his respective signatures for consideration and approval of the board of directors and board after consideration and approval, authorize the signing of financial statements for the issuance and circulation. staff report