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May 8, 2021

SECP mulls book-entry form

 
May 8, 2021

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) is considering a proposal requiring all the public listed, public unlisted, public interest, and private limited companies to have their shares in book-entry form in compliance with Section 72 of the Companies Act, 2017, a statement said on Friday.

Shares held in the book-entry form would have the same rights and privileges as shares held in physical certificate form.

Once notified, all companies, required to replace their physical shares with book-entry form, would apply to a depository, licensed by the SECP for conversion of physical shares and further issuance of shares in the book-entry form. The depository would prescribe procedures for such conversion and issuance of shares, including documentation required, process to be followed and applicable fee/charges.

Handling of shares in case of corporate actions, ie, issue of bonus/right shares and transfer or selling of shares would be much easier if shares are converted into the book-entry form.