SECP invites public feedback on share issue reforms

July 04, 2025 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has issued a notification inviting public consultation on proposed amendments to the Companies (Further Issue of Shares) Regulations, 2020.

The proposed changes aim to streamline the processes for issuing bonus and right shares, significantly reducing the timelines by 87% and 72% respectively.

Under the amendments, the timeline for bonus share issuance would be reduced from 85 days to 11 days, and for right shares from 181 days to 50 days.

These reforms are intended to enhance market efficiency and enable quicker capital mobilization.

The draft amendments are the result of an extensive consultation process involving key stakeholders, including the Pakistan Stock Exchange (PSX), Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL), leading Consultants to the Issue, legal experts, and financial professionals.

Initial feedback helped identify areas for improvement, which were compiled into a detailed Consultation Paper titled “Reduction in Timelines for Issuance of Bonus and Right Shares by Listed Companies.”

The SECP conducted in-person consultations followed by an online session to discuss feedback in detail, ensuring the proposed reforms reflect a consensus-driven approach.

The draft amendments are now open for public comment before final implementation.

Additionally, the proposed reforms include removing the requirement for companies to prepare draft offer documents in Urdu and introducing a new requirement to submit additional information with the right offer document to ensure smooth and efficient processing.

The SECP reaffirmed its commitment to a robust and transparent consultation process, allowing all stakeholders a meaningful opportunity to contribute to the regulatory review.

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