In a move to modernize Pakistan’s capital markets, the Securities and Exchange Commission of Pakistan (SECP) has rolled out a consultation paper inviting public feedback on proposed reforms to speed up the issuance of bonus and right shares.
These changes aim to slash the long wait times investors face, leveraging tech to bring Pakistan’s regulatory framework in line with global best practices.
🚨 What’s the Problem?
Currently, there’s a significant delay between a company’s announcement and the actual crediting of bonus or right shares to shareholders. According to SECP:
- 🕒 Right issues can take up to 181 days
- 🕒 Interim bonus shares can take up to 85 days
- 🕒 Final bonus shares can take up to 51 days
These lengthy timelines are often caused by outdated regulations and lack of fixed deadlines, even after approvals.
🔄 What’s Changing?
SECP’s proposed amendments aim to:
- 📉 Reduce issuance timelines by over 50%
- ⚙️ Streamline regulatory steps
- 💻 Leverage digital platforms for faster processing
- 🗂️ Introduce specific deadlines to prevent delays
- 🧾 Improve transparency for companies and investors alike
🧠 Why It Matters
Investors often find themselves waiting months to receive shares they’re entitled to—even when companies follow all the rules. That’s because the rules themselves are slow.
By speeding up this process:
- 💰 Investors get faster access to their entitlements
- 📈 Market liquidity and investor confidence increase
- 🧑💼 Companies can act swiftly without regulatory bottlenecks
- 🌍 Pakistan’s capital market gets closer to global standards
📬 SECP Wants to Hear from YOU!
This is a public consultation—so whether you’re a retail investor, financial institution, company representative, or market enthusiast, your voice matters.
🔗 Read the full consultation paper and submit feedback: www.secp.gov.pk
🗓️ Deadline to Share Feedback: TBA (Check official SECP website)
🧭 What’s Next?
Once feedback is collected and reviewed, SECP plans to implement a revised framework that reflects today’s digital landscape, offering faster, more reliable corporate actions for all stakeholders.
📣 Final Thoughts
This is a much-needed step toward investor-friendly reform in Pakistan’s capital markets. By cutting red tape and embracing digital efficiency, SECP is working to build a more transparent, responsive, and modern regulatory environment.
✅ Call to Action
📩 Have suggestions or concerns?
👉 Visit secp.gov.pk and submit your feedback today!
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