ISLAMABAD — The Securities and Exchange Commission of Pakistan (SECP) has issued draft amendments to the Companies (Further Issue of Shares) Regulations, 2020, aimed at significantly reducing the timelines for the issuance of bonus and right shares by listed companies.
According to a press release issued on Thursday, the proposed changes would slash the timeline for crediting bonus shares from the existing 85 days to just 11 days — an 87% reduction — while the right shares issuance process would be shortened from 181 days to 50 days, marking a 72% cut. The initiative seeks to enhance market efficiency and enable faster capital mobilisation.
The amendments are now open for public consultation. They follow extensive deliberations with key stakeholders including the Pakistan Stock Exchange (PSX), Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL), leading issue consultants, legal practitioners, and financial experts.
A detailed consultation paper titled “Reduction in Timelines for Issuance of Bonus and Right Shares by Listed Companies” was earlier published to solicit feedback. The SECP also hosted in-person and online consultation sessions to refine the proposals through consensus-based discussions.
In addition to the revised timelines, other proposed changes include removing the requirement to prepare a draft offer document in Urdu, and introducing new provisions for submitting supplementary information with the right offer document. These changes are intended to further improve processing speed and administrative efficiency.
The SECP has invited stakeholders to submit their feedback by July 17, 2025, at capitalissuefeedback@secp.gov.pk. The official notification containing the full details of the proposed amendments is available on the SECP website.
The Commission reiterated its commitment to a transparent, consultative rulemaking process that incorporates industry input to ensure practical and effective regulatory reform.
