ISLAMABAD – The Securities and Exmodify Commission of Pakistan (SECP) has issued notification for public consultation on the proposed amfinishments to the Companies (Further Issue of Shares) Regulations, 2020 (the “Regulations”). These amfinishments focus on streamlining the processes for bonus and right shares issuance and to significantly reduce timelines by 87 percent and 72 percent for bonus and right issue respectively, thereby enhancing market efficiency and enabling quicker capital mobilisation. Timelines for bonus and right shares issue are proposed to be reduced to 11 days (existing: 85 days) and 50 days (existing 181 days), respectively.
The draft amfinishments followed an extensive consultation process with key stakeholders, including PSX, CDC, NCCPL, leading Consultants to Issue, lawyers and financial experts. Initial feedback was collected to identify areas for improvement in the Regulations. The insights were synthesized into a detailed Consultation Paper titled “Reduction in Timelines for Issuance of Bonus and Right Shares by Listed Companies”, which was published to invite further feedback.
In-person consultations were held, followed by an online session, where the feedback was discussed in-depth, ensuring the proposals were refined based on a consensus-driven approach. The SECP has now notified the draft amfinishments for comments before these become effective. Additionally, amfinishments are also proposed to reshift requirement on a company to prepare draft offer document in Urdu language and introduce a new requirement to submit additional information along with the right offer document to ensure smooth and efficient processing of the right offer document. The SECP is committed to a robust and transparent consultation process, ensuring stakeholders have ample opportunity to contribute during the regulatory review. Feedback on the draft amfinishments can be submitted by July 17, 2025 to capitalissuefeedback@secp.gov.pk. The notification detailing the proposed amfinishments is available on the SECP website.
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