Regulatory Alerts2022-09-23
Added · Updated
Issuance of Convertible Debt Securities through Right Offer Regulations, 2022
These regulations establish the framework for listed companies in Pakistan to issue convertible debt securities via right offers, requiring board approval and strict proportional allocation to existing shareholders based on a cut-off date. A right offer is cancelled if less than 80% is subscribed, unless an alternate financing arrangement exists, in which case the board must refund subscription money within five working days. The regulations mandate specific timelines for book closure, public comment periods on the letter of offer, and the dispatch of securities, while also prescribing detailed disclosure requirements in Schedule I and post-issuance reporting obligations to the Securities and Exchange Commission of Pakistan.