Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has mandated that all changes involving the induction and cessation of company directors and chief executives must now be reported through its digital platform, eZfile. This move is part of the SECP’s recent amendments to Regulation 50 of the Companies Regulations, 2024, aimed at streamlining corporate reporting processes and enhancing transparency and accuracy in the documentation of corporate leadership changes.

According to Securities and Exchange Commission of Pakistan, the revised regulation introduces several significant changes to safeguard the reporting process. One of the critical amendments is the introduction of a digital PIN application, which requires individuals to provide explicit consent before any reporting of their induction or cessation can be made by the companies to the registrar. This new requirement is expected to curtail instances of incorrect or fraudulent reporting substantially.

Furthermore, the amended regulation stipulates that all current directors and CEOs must register themselves on the eZfile system within three months from the date the notification was issued. This registration must occur before any induction, resignation, or retirement events are reported. In addition, all notifications regarding the induction or cessation of directors or CEOs must exclusively be filed through eZfile. This measure is set to improve the efficiency and transparency of the reporting process, ensuring that all involved parties are duly informed via email and registered mobile notifications about any changes made.

These changes by the SECP follow its ongoing efforts to enhance the regulatory framework governing corporate governance in Pakistan, focusing on making processes simpler and more secure for all stakeholders involved.