SECP grants corporate restructuring licence to LSE Ventures

LSE Ventures Limited has received a licence from the Securities and Exchange Commission of Pakistan to operate as a corporate restructuring company, enabling it to acquire and manage non-performing assets of financial institutions.

In a notice to the Pakistan Stock Exchange dated January 28, the company said the licence allows it to acquire, restructure, reorganise, revive or liquidate distressed companies or their businesses under the Corporate Restructuring Companies Act, 2016.

The company said it has already initiated discussions with several financial and banking entities for the potential acquisition of distressed and non-performing loan companies. It expects this segment to become a major contributor to its bottom-line performance going forward.

According to the SECP licence issued on January 27, the approval was granted under subsection (2) of Section 4 of the Corporate Restructuring Companies Act, 2016, following the regulator’s review of the company’s application and amendments to its memorandum of association.

The licence sets out conditions including a minimum paid-up capital requirement of Rs500 million, restrictions on deposit-taking, compliance with periodic reporting requirements, and adherence to governance and eligibility criteria under the corporate restructuring framework.