SECP issues rules for reviving firms

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Thursday notified Corporate Rehabilitation Regulations, 2019, with an aim to facilitate the revival of distressed companies.

A statement said the regulations, issued under section 41 of the Corporate Rehabilitation Act, 2018 (CRA) broadly covered procedures for maintenance of Penal of Insolvency Experts, manner of determination of remuneration of Insolvency Experts, and Code of Conduct for Insolvency Experts, etc.

The CRA enacted last year was aimed at providing companies facing bankruptcy with a legislative scheme to restructure their debts in order to return to productivity. Under the CRA, a company as specified in section 6 or qualifying creditor as defined in section 2(1)(q) thereof may file a petition in the High Court for order of mediation.