04-15-2010, 10:19 PM
The Rules do not so crudely and straightforwardly apply to listed companies only, in my view; and it gets clarified from the sub-clause (i) of rule 3 where public offering by Companies (and not by a person) is discussed.
Further, all the four subclauses of Rule 3 are independent of each other and every one has to be concentrated separately.
Rule 9's first line no where mentions of a listed company; and public offering can be given for unlisted public company as well.
Regardless of above, I understand that these rules do apply to listed companies as well since the term COMPANY has been used; yet a clarification is needed because regardless of whatever has been mentioned elsewhere in the Ordinance the term COMPANY even includes the private limited companies which will not make sense to be included in Rule 9's ambit.
Further, if a person can sell his shares in secondary market in small trenches without doing anything; why he should go for a long list of things to be done?
Let me assure you that a big transaction (even only between two parties) can be routed through stock exchanges without invoking these rules, (even on agreed prices that are not driven through market forces), if a proper planning and arrangement is available.
In case of a single buyer the only requirement would be to comply with rules pertaining to substantial acquisition (buyer's responsibility).
However, since rules are there, and the procedure mentioned has to be followed in case of public offering, it is advisable to get a clarification from SECP before entering into a public offer.
Regards,
