LSEFSL, DCCL get court nod for reconstruction scheme

October 30, 2025 (MLN): The Lahore High Court has approved the Scheme of Compromises, Arrangement, and Reconstruction between LSE Financial Services Limited (LSEFSL) and Digital Custodian Company Limited (DCCL).

According to a company filing with the Pakistan Stock Exchange (PSX), the court order dated October 13, 2025, sanctioned the scheme under Sections 279 to 285(8) of the Companies Act, 2017, allowing the transfer of designated assets and liabilities, and the reconstitution of share capital and reserves.

Under the scheme, LSEFSL and DCCL will distribute their holdings in LSE Capital Limited (LSECL) and each other among their shareholders.

• LSEFSL will distribute 287.06 shares of LSECL for every 1,000 shares held.

• DCCL will distribute 386.73 shares of LSECL and 25.17 shares of LSEFSL for every 1,000 shares held.
  Fractional shares will not be issued.

Following the restructuring, LSEFSL’s paid-up capital will reduce by 24.32% to 27 million shares, while DCCL’s will decline by 23.47% to 40 million shares.

Their authorized capital will be adjusted to 42.9 million and 129 million shares, respectively.

Additionally, liabilities worth Rs 37.82 million will be transferred from DCCL to LSEFSL.

The companies are required to submit a revised Statement of Financial Position reflecting the scheme’s effects within 90 days of the sanction date.

Meetings of the boards of LSEFSL, DCCL, and LSE Capital Limited are scheduled for November 1, 2025, to determine a uniform entitlement date and book closure period for the share distributions.

The companies have also declared a closed period from October 30 to November 1, 2025, during which directors, executives, and CEOs are prohibited from trading in company shares.

The move marks a significant step toward streamlining the LSE Group’s corporate structure, aligning ownership and governance frameworks under a unified capital distribution strategy.

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