PSX Deal to Buy CDC Shares Hits Snag Without SECP Consent

Pakistan Stock Exchange (PSX) will not proceed with the acquisition of shares in the Central Depository Company of Pakistan Limited (CDC) since the Securities and Exchange Commission of Pakistan (SECP) hasn’t approved the investment. “We would like to inform you that PSX will not be proceeding to acquire CDC’s shares from IGI Investments (Private) Limited and Allied Bank Limited since the Securities and Exchange Commission of Pakistan (SECP or the Commission) has not acceded its approval to such investments,” read a notice on Tuesday. The Commission’s approval was required as per the terms of the Central Depository (Licensing and Operations) Regulations, 2016. Last year, PSX expressed interest to purchase over 1.94 million CDC shares at an aggregate price of Rs. 48.7 million. In March 2023, the Competition Commission of Pakistan (CCP) cleared the premerger application of PSX for acquiring shares of the Central Depository Company, but without SECP approval for proceeding with the buyout today, the bourse has stepped back from the deal.