SECP amends rules for listed firms

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has revamped the Companies Regulations, 2020 for listed companies and introduced certain amendments in the capital issue regime to bring in line with global practices, a statement said on Wednesday.

The major amendment was adoption of disclosure-based regime that envisages preparation of offering document containing enhanced disclosures, seeking public comments (optional), comments of the apex and front-line regulators and publishing final offering document after incorporating the comments, SECP said.

Other amendments include provision of exit opportunity to the shareholders, imposition of lock-in clause on the sponsors, reporting of proceeds utilisation by the statutory auditors, optional concept of minimum level of subscription and applications supported by blocked amounts, and placing restrictions on underwriters that fail to meet their obligations, it added.

The regulator has specified minimum contents of valuation reports and procedural requirements to be complied by the companies. For employee stock option schemes, companies can now announce such schemes without seeking SECP’s approval and ensure compliance at their own end.

The amendments would allow investors to make informed decisions, increase transparency, and build investor confidence, SECP said.