The Securities and Exchange Commission of Pakistan has decided to require newly incorporated unlisted companies to issue and maintain shares only in book-entry form, replacing physical shares. The requirement, framed as an application of Section 72 of the Companies Act, 2017, takes effect from 3 March 2025 and applies to all newly incorporated companies with share capital. To implement the change, subscribers will digitally execute an agreement with the Central Depository for direct crediting of shares into the Central Depository System (CDS) at the time of incorporation. SECP will transmit company and shareholder details to the Central Depository via API integration to enable set-up of the company and its securities in CDS and the automatic opening of Simplified Investor Accounts (IAS) for subscribers, with eAlerts used to notify subscribers once shares are credited. SECP also introduced automated fee collection, consent capture at incorporation, and online document submission through the eZfile portal, while the Central Depository has made amendments to its relevant regulations to support the induction process.
Securites & Exchange Commission of Pakistan 2025-02-07
Securities and Exchange Commission of Pakistan mandates book-entry shares for newly incorporated unlisted companies from 3 March 2025
Effective 3 March 2025, the Securities and Exchange Commission of Pakistan will require newly incorporated unlisted companies to issue shares only in book-entry form under Section 72 of the Companies Act, 2017. Subscribers will digitally execute agreements with the Central Depository for direct share crediting into the Central Depository System (CDS) at incorporation. SECP will facilitate this through API integration, automated processes, and online submissions, while the Central Depository has amended its regulations to support the transition.