SECP mulls conversion of physical shares into book-entry form

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) is considering a proposal requiring all the public listed, public unlisted, public interest, and private limited companies to have their shares in book-entry form in compliance with Section 72 of the Companies Act, 2017, a statement said on Friday.

Shares held in the book-entry form would have the same rights and privileges as shares held in physical certificate form.

Once notified, all companies, required to replace their physical shares with book-entry form, would apply to a depository, licensed by the SECP for conversion of physical shares and further issuance of shares in the book-entry form. The depository would prescribe procedures for such conversion and issuance of shares, including documentation required, process to be followed and applicable fee/charges.

Handling of shares in case of corporate actions, ie, issue of bonus/right shares and transfer or selling of shares would be much easier if shares are converted into the book-entry form.

- Advertisement -


Please enter your comment!
Please enter your name here

- Advertisement -

Must Read

Local tea production to be increased to cut down imports

While addressing the golden jubilee celebrations of the Pakistan Tea Association on Saturday, Senator Talha Mahmood, chairman of the Senate Standing Committee on Finance...