ISLAMABAD: The Securities and Exalter Commission of Pakistan (SECP) has notified revised Companies (Further Issue of Shares) Regulations, 2020 to create an appropriate balance between facilitating corporate rehabilitation and enabling investors to build informed investment decisions.
The SECP Monday notified amfinishments to the Companies (Further Issue of Shares) Regulations, 2020 (the Regulations) to facilitate capital raising by listed companies, while maintaining adequate disclosure requirements for investors.
The amfinishments address a challenge faced by listed companies when raising further capital from existing shareholders through a rights issue.
Under the previous framework, listed companies were prohibited from announcing a rights issue if the company, its sponsors, promoters, substantial shareholders, or directors had any overdue amounts or defaults appearing in their Credit Information Bureau (CIB) report. This restriction constrained financially stressed yet viable companies from raising capital, even in circumstances where existing shareholders were willing to support revival, restructuring, or continuation of operations.
Under the amfinished framework, the requirement for a clean CIB report will not apply if the relevant persons provide a No Objection Certificate (NOC) regarding the proposed rights issue from the concerned financial institution(s). To ensure transparency and protect investors’ interests, companies in such cases must build comprehensive disclosures in the rights offer document. These disclosures must include details of any defaults or overdue amounts, ongoing recovery proceedings, and the status of any debt restructuring.
The revised Regulations strike an appropriate balance between facilitating corporate rehabilitation and enabling investors to build informed investment decisions.
The notification of the amfinishments follows a consultative process in which the SECP sought feedback from market stakeholders, including listed companies, issue consultants, professional bodies, industest associations, law firms, and capital market institutions.
The amfinishments are expected to enhance market confidence, improve access to capital for listed companies, and strengthen transparency within the rights issue framework.
Copyright Business Recorder, 2026
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