The Securities and Exchange Commission of Pakistan has issued a notification to begin a public consultation on draft amendments to the Companies (Further Issue of Shares) Regulations, 2020, focusing on the rule that prevents listed companies from proceeding with a rights issue when their Credit Information Bureau report shows overdues or defaults. The draft approach shifts from an outright restriction toward allowing rights offers alongside stronger investor-facing disclosures. The proposal follows the regulator’s evaluation of stakeholder feedback on an earlier consultation paper that assessed the risks and benefits of removing the CIB report requirement for listed companies undertaking rights issues. Stakeholders largely argued that the existing restriction can block financially distressed listed companies from raising funds for revival, restructuring, or resumption of operations even where existing shareholders are willing to provide support. Under the draft amendments, rights offer documentation would need to disclose details of any existing overdues or defaults and those from the past three years, as well as information on any ongoing recovery proceedings. Written feedback on the draft amendments is requested by November 19, 2025.

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