The Securities and Exchange Commission of Pakistan (SECP) has notified amendments to the Companies (Further Issue of Shares) Regulations, 2020 to facilitate capital raising by listed companies through rights issues, while maintaining investor disclosure requirements. Previously, a listed company could not announce a rights issue if the company, its sponsors, promoters, substantial shareholders, or directors had overdue amounts or defaults reflected in their Credit Information Bureau (CIB) report. Under the amended framework, the clean CIB requirement will not apply where the relevant persons obtain a No Objection Certificate (NOC) from the concerned financial institution(s). In such cases, the rights offer document must include comprehensive disclosures covering defaults or overdue amounts, any ongoing recovery proceedings, and the status of any debt restructuring. The changes follow stakeholder consultation involving listed companies, issue consultants, professional bodies, industry associations, law firms, and capital market institutions.

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