SECP proposes changes to bring transparency in capital formation

ISLAMABAD – The Securities and Exchange Commission of Pakistan (SECP), in a bid to improve and ensure transparency in the process for capital formation, has recommended a revamp of Companies (Further Issue of Shares) Regulations, 2020. A concept paper, suggesting new modes and mechanics through which companies can raise capital, has been placed on SECP’s website for public comments. The concept paper, in accordance with international best practices, has proposed to adopt an enhanced disclosure-based regime for issuance of right shares by the listed companies. In this regime, the focus is increased to provide sufficient information to investors, enabling them to make informed decisions, increase investor protection. The proposed disclosure-based regiment will include, preparation of offering document with enhanced disclosures; seeking public comments of the Apex and Front-line regulator and publishing final offering document after incorporating the same, leading to completion of right issue. In many countries like Malaysia, Thailand, Singapore and India, disclosure-based regime is now considered at the core for any capital raising activity by listed companies. The paper also includes few considerations with regard to issuance of shares by listed companies by way of other than right including Employee Stock Option Schemes (ESOS). Comments/input/feedback can be shared at

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