Amendments to the Companies (Further Issue of Shares) Regulations, 2020

The Securities and Exchange Commission of Pakistan amends the Companies (Further Issue of Shares) Regulations, 2020 to extend their applicability to all companies by removing references to listed entities. The amendments introduce strict pre-issuance conditions, requiring companies and their sponsors to have no overdues or defaults, and mandate the preparation of draft offer documents in English and Urdu. Specific timelines are established for regulatory review, including a 45-day window for draft submission, 15 days for observations, and 20 days for final document submission. Additionally, the rules impose shareholding retention periods of one year for sponsors, two years for associated companies, and six months for other persons, while updating disclosure requirements for utilization of proceeds and acquisitions.

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GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN -.-.-.- Islamabad, the 4 th March, 2024 NOTIFICATION SRO 361 (I)/2024.- In exercise of the powers conferred under section 512 read with sections 58, 82, 83 and 83 A of the Companies Act, 2017 (XIX of 2017), the Securities and Exchange Commission of Pakistan, is hereby pleased to notify the following amendments to the Companies (Further Issue of Shares) Regulations, 2020, the same having been published in the official Gazette vide notification S.R.O. 1392 (I)/2023 dated September 26, 2023 as required by proviso to the said section 512, namely:- AMENDMENTS In the aforesaid Regulations, - (1) in regulation 1, sub-regulation (3), after the words “apply to the” the word “listed” shall be added; (2) in regulation 2, sub-regulation (1), after clause (xvii), the following new clause shall be inserted, namely: - “(xviia) “Sponsor” shall have the same meaning as assigned to it in clause (liv) of sub-regulation (1) of regulation 2 of Public Offering Regulations, 2017;”; (3) in regulation 3, - (a) in sub-regulation (1),- (i) the word “listed” shall be omitted; (ii) for clause (v), the following shall be substituted, namely: - “(v) The letter of offer, accompanied with a circular as required under sub-section (3) of section 83 of the Act, on a format as provided in schedule 1 to these regulations, shall be sent to all members along with copy of the extract of the resolution of the board’s meeting approving the right issue;”; (iii) in clause (vi),- (A) the word “listed” occurring first shall be omitted; and

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Lineage: Amended

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Timeline

Amended 2 times · last 2025-09-19

2025-09-19SECPThe Companies (Further Issue of Shares) Regulations, 2020amends
2024-04-19SECPThe Companies (Further Issue of Shares) Regulations 2020amends

Source: Securities and Exchange Commission of Pakistan — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works