SECP announces fee relief for unlisted firms converting to digital shares

The Securities and Exchange Commission of Pakistan (SECP) has introduced a fee relief package to facilitate the conversion of physical shares into digital book-entry form for unlisted companies, aiming to ease the transition toward a paperless corporate environment.

In a press release issued on Thursday, the regulator said the package has been implemented through the Central Depository Company (CDC) and will apply to existing unlisted companies required to convert their physical shares into electronic format.

Under the relief measures, companies with paid-up capital of up to Rs. 25 million will have their annual fee waived for the first year. In addition, the security deposit fee, initial conversion deposit, and security deposit processing fee will also be waived for all unlisted companies during the same period.

For unlisted companies with paid-up capital exceeding Rs. 25 million, only the applicable annual fee will be payable, while conversion-related charges and security deposit fees will remain waived for the first year.

The SECP said the relief would also extend to unlisted companies that voluntarily convert their physical shares into book-entry form with the CDC.

The move follows the issuance of SRO 328(I)/2026 by the regulator, which mandates unlisted companies to convert their physical shares into book-entry form. The requirement applies to companies undertaking share-related transactions in the future, including transfers of shares, issuance of bonus shares, right shares, shares issued other than by way of rights, and buy-back of shares.

According to the SECP, the measure is designed to facilitate the transition of unlisted companies to the Central Depository System and reduce the financial burden associated with digitising shareholding records. By lowering upfront costs, the regulator aims to encourage compliance and ensure a smoother shift away from physical share certificates.

The initiative forms part of broader efforts to modernise Pakistan’s corporate framework and improve transparency and efficiency in the handling of share transactions. Moving to a book-entry system is expected to enhance record-keeping, reduce the risks associated with lost or forged certificates, and streamline corporate actions for unlisted firms.

The SECP reiterated that the relief package is intended to support companies during the initial phase of implementation and promote the development of a secure, efficient, and fully paperless shareholding environment in the country.