Karachi: Securities and Exchange Commission of Pakistan on Tuesday extended the deadline for all listed companies to October 31st for meeting stipulation about payment of cash dividends via electronic mode directly into the bank account.
This stipulation had been introduced by the regulator in the Companies Act 2017 enacted on 30th of May 2017. As per Section 242, companies would be required to pay cash dividends via electronic mode of transfer into the intended recipients bank account as directed by the appropriate shareholder.
This deadline has been extended by the SECP on account of some listed companies facing issues with implementing these rules by the 1st of October 2017. These entities will be allowed to pay out the dividends as per previously proscribed rules till aforementioned date.
SECP has instructed all listed companies to seek details from their shareholders regarding bank account etc and update them accordingly, as from 1st of November it would become mandatory for all these entities to pay dividends through electronic mode.