Regulatory Alerts2024-03-14
Added · Updated
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.