For subjects other than vouchers, the minimum content of evaluation reports and the procedural requirements to be respected by companies have been established. Changes to the capital issuance regime should align the local market with global practices, he added. SECP said the investigation into historical cases of rights issuances by publicly traded companies showed that risk disclosures were minimal and provided limited information to investors, even for large issues. For non-good questions, the minimum content of the evaluation reports and the procedural requirements to be respected by companies have been established. For employee stock option (ESOS) plans, companies can now advertise such programs without seeking SECP approval and ensure compliance with their own camp. An examination of historical cases of rights issuances by listed companies revealed that risk disclosure was minimal and provided investors with limited information, even in the case of large issuances. As a result, after reviewing practices in several jurisdictions, analyzing global trends, and consulting extensively with industry participants, SECP has made some changes to the capital issuance regime to align them with global practices. Other changes include providing exit opportunities to shareholders, imposing a lock-up clause on promoters, reporting on auditors` use of the proceeds, the optional concept of minimum subscription (MLS) and “blocked applications” (ASBA), and the introduction of restrictions for policyholders who do not meet their obligations. All of the above changes will allow investors to make informed decisions, which will increase transparency and strengthen investor confidence. The most significant change is the adoption of a disclosure rule that provides for the preparation of offer documents with extensive disclosures, the solicitation of public comments (optional), comments from front-line and front-line regulators, and the publication of final offer documents after comments have been included. “These changes were introduced after studying practices in multiple jurisdictions, analyzing global trends, and conducting extensive consultations with industry participants,” a SECP spokesperson said. 21. September 2022: The Securities & Exchange Commission of Pakistan (SECP) has revised the Companies (New Share Issuance) Regulations 2020 (Regulations) for listed companies by introducing amendments in the announcement dated 21 September 2022.
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Wednesday revised the Companies (Supplementary Share Issuance) Regulations 2020 for listed companies to help investors make informed decisions and implement them faster.