SECP to convert physical shares of non-listed companies to electronic form

February 20, 2026 (MLN): The Securities and Exchange Commission of Pakistan (SECP) is moving physical shares of non-listed companies to electronic form through the Central Depository System (CDS).

All transactions of these shares will now occur electronically, eliminating risks of forgery, theft, or loss.

Companies must digitize shares before rights issues, bonuses, buybacks, or transfers, according to a press release issued.

Electronic shares provide secure ownership records, faster and safer transfers, and immediate settlement. They can also be used as collateral for bank loans.

All future share transactions will be processed through the CDS, advancing the modernization of Pakistan’s capital market.

Earlier, the SECP had also directed licensed financial sector companies not listed on the stock exchange to upload their annual audited financial statements on the Financial Portal for Unlisted Companies of the Pakistan Stock Exchange, with 88% of entities already complying.

This move ensures public access to financial reports, strengthens transparency, and promotes better governance.

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