The Securities and Exchange Commission of Pakistan has issued a consultation paper on proposed amendments to the regulatory framework for issuing bonus and right shares, aimed at reducing the time between a company’s announcement and the crediting of shares to shareholders’ accounts. The paper compares existing and proposed timelines across procedural steps and identifies requirements that contribute to delays. SECP’s analysis indicates the end-to-end process can currently take up to around 181 days for right issues, 85 days for interim bonus shares, and 51 days for final bonus shares, with scope to reduce these timelines by more than 50%. SECP also flags that the current framework does not fully reflect increased digitalisation in Pakistan’s capital markets and that unspecified timelines in parts of the regime have contributed to delays even after board approval. Comments are invited by April 17, 2025.
Securites & Exchange Commission of Pakistan 2025-04-07
Securities and Exchange Commission of Pakistan consults on cutting timelines for issuing bonus and right shares
The Securities and Exchange Commission of Pakistan has released a consultation paper proposing amendments to the regulatory framework for issuing bonus and right shares, aiming to significantly reduce processing times. Current timelines can extend up to 181 days for right issues, with potential reductions exceeding 50%. The paper also notes that the existing framework does not adequately incorporate digitalisation in Pakistan’s capital markets.