SECP seeks feedback on improvements in takeover regulations

January 08, 2025 (MLN): To seek feedback on areas of improvement in the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017, the Securities and Exchange Commission of Pakistan (SECP) has issued a consultation paper.

Through these modifications, SECP aims to strengthen the regulatory framework governing takeover transactions of listed companies by enhancing transparency, as per the press release issued today.

It also introduces measures to safeguard the rights of minority shareholders.

The key areas of improvement include proposals for streamlining public announcement timelines and revising price determination criteria for frequently and not frequently traded shares.

Additionally, SECP focuses on enhancing disclosure requirements for acquirers and listed companies.

Provisions for voluntary offers, obligations of the Manager to the Offer (MTO), and mechanisms for handling indirect or chain acquisitions have also been floated for further deliberations.

The proposals have been developed following an initial round of consultations with various stakeholders including market experts, MTOs, law firms, chartered accountants, and listed companies.

Moreover, the scope of consultations is now being expanded to ensure wider participation in finalizing proposed amendment areas.

This will help ensure that any amendments effectively address the evolving needs of the market and its stakeholders.

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