The Securities and Exchange Commission of Pakistan has issued a consultation paper seeking public comments on the requirement under the Companies (Further Issue of Shares) Regulations, 2020 that a listed company must have no overdues or defaults in its Credit Information Bureau (CIB) report before announcing a right issue. Under the current framework, the clean CIB condition applies not only to the issuing company but also to its sponsors, promoters, substantial shareholders, and directors, and it applies irrespective of the amount of any overdue. SECP notes that even minor overdues can block capital raising through rights issues, potentially constraining a company’s ability to revive, restructure, or resume operations when shareholders are willing to provide support. The paper analyses the implications of removing the clean CIB requirement for the issuing company, including potential risks and expected benefits, and includes a comparative review of approaches in other jurisdictions. Comments are requested by October 07, 2025.

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