Section 13: Sale and purchase of shares by a strategic investor and a financial institution

13. Sale and purchase of shares by a strategic investor and a financial institution.—(1) A strategic investor or a financial institution who acquires shares under section 12 may sell its shareholding in a stock exchange only to another strategic investor or a financial institution as the case may be, with the prior written approval of the Commission. (2) A strategic investor may acquire such further shares of a stock exchange in which it is a strategic investor to enable it to increase its shareholding up to fifty one percent of the total paid up capital, subject to the following conditions, namely:— (a) the prior approval of the Commission is obtained for such further acquisition of shares; (b) the further acquisition is made not less than three years after it acquires shares under section 12; and (c) the shares are purchased from the market by making a public offer in a transparent manner. (3) No financial institution who has acquired shares under section 12 may acquire any further shares from the general public: Provided that a financial institution may acquire shares from another financial institution with prior approval of the Commission. (4) The Commission may, by order in writing and reasons to be recorded, relax any one or all of the restrictions provided in sub-sections (1) to (3) after four years of date of demutualization. (5) The provisions of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance, 2002 (CIII of 2002) shall not apply to any acquisition of voting shares of a stock exchange by a strategic investor.

Effective date: 2012-01-01

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