SECP formulates draft listed cos rules

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has formulated draft Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2016, under the Securities Act, 2015, keeping in view the best interests of the shareholders, a statement said on Tuesday.

These regulations will replace the existing Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2008, framed under the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance 2002.

The draft takeover regulations have been published in the official gazette and placed on the Securities and Exchange Commission of Pakistan’s website (www. secp.gov.pk) for public consultation purposes.

The stakeholders may submit their comments by December 23, it added. As per the draft regulations, a consultant to the issue duly licensed by the Securities and Exchange Commission of Pakistan  can be appointed as manager to the offer and payments to the shareholders of the target company can be made in the form of cash only.

The acquirer and the target company have been obligated to comply with the requirements of the Securities Act, 2015, Takeover regulations and regulations of the Pakistan Stock Exchange (PSX).

Furthermore, the acquirer has been made responsible to act in the good faith and in the best interest of the target company and its shareholders, it added.