Regulatory Alerts2022-09-21
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 introduce new definitions, general conditions, and procedural requirements for listed companies issuing right shares. The amendments establish a tiered compliance framework based on issue size, requiring enhanced disclosures, draft offer document submissions, and underwriting obligations for issues exceeding Rs. 750 million or 50% of paid-up capital. New provisions mandate the ASBA facility, restrict eligibility for defaulter companies, impose shareholding retention periods on sponsors and substantial shareholders, and cap employee stock option entitlement pools at 10% annually and 25% cumulatively. Additionally, the regulations specify detailed valuation report contents for non-cash asset issuances and update the offer document schedule to include investor advice and board undertakings.