Regulatory Alerts2019-05-23
Added · Updated
Listed Companies (Buyback of shares) Regulations, 2019
These regulations establish the framework for listed companies in Pakistan to buy back their own shares, requiring a minimum three-year listing history and special resolution approval by members. They mandate specific eligibility criteria, including compliance with free float requirements and financial capability to meet obligations for twelve months post-purchase. The rules define detailed procedures for tender offers and exchange-based purchases, including escrow account maintenance, purchase periods of up to ninety days, and pricing floors based on weighted average prices. Additionally, the regulations impose restrictions on selling treasury shares for six months, limit holdings to twenty percent of paid-up capital, and repeal the 2016 buyback regulations.