KARACHI: The Board of Directors of Pakistan Stock Exchange (PSX) has proposed to increase annual listing fee for equities spread over a period of two financial years i.e. FY 2018-1 9 and FY 2019-20 & onwards from existing Rs 1.5 million to Rs 3 million. Also, the Board has proposed reduction in annual and initial listing fee applicable on listed companies from existing Rs 2.5 million to Rs 1.5 million. The Board of Directors of PSX in its meeting held on April I8, 20l 8 approved consequential amendments to Clause 5.l 8 (Listing and Annual Fee) of PSX regulations to implement the decisions of the Board to take effect from July 01, 2018. The Board, in order to reduce maximum cap on initial listing fee from existing Rs 2.5 million to Rs l.5 million, has proposed amendments to PSX Regulations in relation to change in annual and initial listing fee applicable on listed companies. Similarly, to increase annual listing fee for equities spread over a period of two financial years i.e. FY 2018-201 9 and FY 2019-2020 & onwards; and in order to incentivize new companies, such companies shall not be charged on account of annual listing fee for l2 months following their listing. Acting Chief Regulatory Officer at PSX, Abbas Mirza, said in order to incentivize new companies, the maximum cap on initial listing fee is proposed to be reduced from Rs 2.5 million to Rs 1.5 million. Reasoning the proposed increase in maximum cap of annual listing fee and recurring annual listing fee which spreads over a period of two years, Mirza said it is due to growing inflationary trend in the country on year-to-year basis for the last 7 years. Also, this move is being taken to follow the international practices like the peer exchanges namely: India, Malaysia and Turkey. On comparison, it was observed that the PSX is much cheaper for all companies i.e. small, mid and large cap companies; and the fact that PSX charges one-time higher Initial listing fee, but the pricing is significantly lower than the peer exchanges for recurring annual listing fee, he added. To encourage equity listings, the Board has further proposed that the companies seeking listing shall not be charged Annual Listing Fee for 12 months from the date of listing of such company. In this regard, the PSX has invited to provide written comments on the proposed amendments either in hard form or through email latest by Friday, April 27, 2018. Published in Daily Times, April 22nd 2018.