Listed companies advised to follow new securities law

ISLAMABAD: The listed companies’ watchdog has advised their beneficial owners to follow the new securities law for filing their ownership returns and reporting of tenderable gains, a statement said on Tuesday.
The new securities law, which was promulgated on May 13, 2015, is aimed at effective regulation of the securities market and enhanced protection of investors.
Following the promulgation of the 2015 Securities Act, sections 220-224 of the 1984 Companies Ordinance related to the submission of returns of beneficial ownership of listed companies and reporting of tenderable have been replaced by sections 101-106 of the 2015 Securities Act.
According to the replaced sections, every person who becomes a beneficial owner of a listed company will give notice in writing to the company concerning his ownership and also report thereafter changes in beneficial ownership to the company. The reporting requirement is to be fulfilled within seven days of becoming beneficial owner.
Further, every listed company will maintain a register of beneficial owners’ interests. Whenever a listed company is notified first disclosure of any matter, it will notify it to the SECP.
Every beneficial owner will file returns of beneficial ownership with the SECP’s Securities Market Division. Gains made by a beneficial owner by the purchase and sale, is required to be reported to the SECP.
Besides, pursuant to 2015 Securities Act, the SECP is required to prescribe returns of beneficial ownership including reporting of accrual of tenderable gains.