ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued a consultation paper seeking public feedback on proposed amendments to the regulatory framework for issuing bonus and right shares. The proposed reforms aim to significantly cut down the time between the announcement of such corporate actions and the actual crediting of shares to shareholders’ accounts.

The consultation paper presents the current regulatory provisions related to the issuance process, offering a comparative analysis of existing and proposed timelines for each procedural step. The SECP has identified specific requirements within the current framework that may contribute to undue delays.

According to the SECP’s analysis, the current process—from board announcement to crediting shares—can take up to 181 days for right issues, 85 days for interim bonus shares, and 51 days for final bonus shares. The SECP suggests these timelines could be reduced by more than 50%.

The SECP noted that the existing framework does not fully reflect technological advancements and the increasing digitalization of Pakistan’s capital markets. In some cases, the absence of specified timelines under the current regime has led to significant delays, even after a bonus or right issue is approved by the board. This results in shareholders facing long waits to receive their entitlements, despite companies adhering to prescribed regulations.

To address these issues, the SECP proposes revising the regulatory framework to streamline and expedite the issuance process. The proposed changes would leverage technology and enhance operational efficiency, aiming to better serve shareholders and companies alike.