The Securities and Exchange Commission of Pakistan (SECP) has published draft amendments to the Companies (Further Issue of Shares) Regulations, 2020 for public comment, aimed at streamlining further issues of shares with different rights and privileges by listed companies while protecting minority shareholders, supporting corporate governance and improving transparency and price discovery. Under the proposals, any shares carrying voting rights would be required to also be entitled to dividends. The draft would also require that ordinary shares, applying the one share one vote principle, account for at least 75% of a company’s total voting power, cap varied-rights shares at a maximum of five voting rights per share, and mandate that ordinary shares with varied rights be issued as a listed security. The SECP framed the draft as the outcome of prior engagement with stakeholders including the Pakistan Stock Exchange, Central Depository Company, National Clearing Company of Pakistan, listed companies, professional advisers and market experts. Comments on the draft amendments are requested by October 2, 2025, after which the SECP intends to finalize the changes into regulations.
Securites & Exchange Commission of Pakistan 2025-09-22
Securities and Exchange Commission of Pakistan consults on amendments to govern listed companies issuing shares with different rights
The Securities and Exchange Commission of Pakistan (SECP) has released draft amendments to the Companies (Further Issue of Shares) Regulations, 2020, for public comment. The proposals aim to streamline share issues with varied rights by listed companies, ensuring voting shares receive dividends and ordinary shares represent at least 75% of voting power. The draft follows stakeholder engagement and seeks to enhance corporate governance, transparency, and price discovery.