Further share issuance simplified

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Tuesday proposed amendments to the regulations governing the further issuance of shares by listed companies, aiming to provide more clarity and ease the procedure for such transactions.

The SECP said it had notified draft amendments to the Companies (Further Issue of Shares) Regulations, 2020, for public consultation. The proposed changes include a standardized procedure with uniform disclosure and reporting requirements for all right issues, regardless of their size, as well as more comprehensive disclosures within the offering document to help investors make informed decisions.

The draft regulations also exempt certain requirements for cases where the further issuance of shares, other than through a right offer, is contingent upon a future event, such as a merger or acquisition.

Additionally, the lock-in period for restricting the sale of shares after issuance to individuals other than sponsors is proposed to be reduced to six months from the current requirements based on shareholding percentage.

The SECP said the amendments were aimed at facilitating listed companies in raising capital through further issuance of shares and enhancing investor protection.