Regulatory Alerts2016-08-05
Added · Updated
Listed Companies (Buy-Back of Shares) Regulations 2016
The Securities and Exchange Commission of Pakistan establishes regulations governing the buy-back of shares by listed companies, requiring eligibility criteria such as a minimum paid-up capital of two hundred million rupees and a two-year listing history. The rules mandate specific procedures for tender offers and exchange-based purchases, including escrow account deposits, defined purchase periods of thirty or one hundred eighty days, and price caps relative to weighted average market prices. Additionally, the regulations impose restrictions on treasury share holdings, limit disposal within six months, and prohibit directors and major shareholders from trading during the purchase period to prevent insider misuse.
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