The Securities and Exchange Commission of Pakistan has approved amendments to the Companies (Further Issue of Shares) Regulations, 2020 to significantly reduce end-to-end timelines for bonus and rights issues, from initiation through credit of shares to shareholder accounts. Under the revised framework, a bonus issue must be completed within 11 days and a rights issue within 53 days. Previously, the overall process could take up to 85 days for bonus issues and 181 days for rights issues. Key process changes include a shorter notice period for book closure, a single-day book closure period, faster submission and clearance of offer documents, quicker credit of Letters of Right, and expedited allotment of rights and bonus shares. The SECP noted the amendments followed a consultation process that included engagement with Pakistan Stock Exchange, Central Depository Company, National Clearing Company of Pakistan, consultants to the issue, legal professionals and financial experts. The amendments take effect from October 01, 2025, alongside consequential amendments to Pakistan Stock Exchange Regulations and Central Depository Company procedures. The SECP is also considering further measures, in consultation with stakeholders, to reduce dividend payment timelines and to address issues related to opening Roshan Digital Accounts with multiple brokerage houses and transferring funds between accounts held by the same person.

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