SECP empowers officials to approve further share capital issuance

The Securities and Exchange Commission of Pakistan (SECP) has authorized officials from its Corporate Registry Department, Licensing, and Registration Division to exercise specified powers, including approving the issuance of "further share capital" by companies.

The authorization comes under SRO 1963(I)/2024, which replaces earlier notifications issued in 2021 and 2022. The SECP delegated these powers to its commissioners and designated officers, specifically for non-listed companies, excluding those engaged in insurance and non-banking finance under relevant regulations.

The delegated powers allow officials to approve the issuance of shares at a discount, extend deadlines for such issuances, and impose conditions for discounted share approvals. They can also permit companies to issue additional share capital for cash or other considerations.

Additionally, these officials are empowered to hear appeals against decisions made under Section 464(2) of the Companies Act, where the registrar has refused or upheld the refusal of requests.

The Divisional Head or Executive Director of the Licensing and Registration Division is authorized to grant extensions for asset transfers, hear appeals regarding the transfer or transmission of shares, and issue related directions, including costs.

This delegation aims to streamline processes and enhance regulatory efficiency within the SECP framework.