SECP invites public feedback on proposed amendments to Companies Regulations 2020

November 06, 2025 (MLN): The Securities and Exchange Commission of Pakistan (SECP) is seeking public comments on draft amendments to the Companies (Further Issue of Shares) Regulations, 2020 (“the Regulations”).

 The proposed changes aim to facilitate listed companies in raising capital through rights issues while enhancing transparency and investor protection, according to a press release by SECP.

Under the Companies Act, 2017, companies may increase their share capital through a rights issue allowing existing shareholders the right to subscribe for additional shares in proportion to their current holdings.

The proposed amendments specifically address the provision that currently restricts listed companies from undertaking a rights issue if their Credit Information Bureau (CIB) report indicates any overdue or default.

The SECP’s latest initiative follows an extensive review of stakeholder feedback on an earlier consultation paper, which evaluated the impact of removing the CIB report requirement for listed companies.

A majority of respondents observed that the existing restriction hinders financially distressed listed companies from raising funds necessary for revival, restructuring, or resumption of operations even when their shareholders are willing to invest further capital.

Taking into account this feedback, the SECP has proposed to relax the restriction while reinforcing disclosure requirements.

Under the draft amendments, companies would be required to provide detailed information in the rights offer document, including particulars of any current or past (up to three years) overdues or defaults, as well as any ongoing recovery proceedings.

The SECP has invited all stakeholders, including listed companies, investors, and market participants, to review the draft amendments available on its website and submit written feedback by November 19, 2025, at capitalissuefeedback@secp.gov.pk.

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