ISLAMABAD, Oct 9: In order to further strengthen the legal framework pertaining to the takeovers of listed companies, the Securities and Exchange Commission of Pakistan (SECP) has notified Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2008.

The regulations have been framed under Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance, 2002 and notified after seeking stakeholders’ comments.

An official press release issued here on Thursday stated that the takeover regulations, in an endeavour to minimise price manipulation and insider trading, require disclosures by the target company on possibilities of its acquisition to the stock exchange.

Similarly, the takeover regulations specify the timing of public announcement of intention to purchase shares of the target company beyond the specified threshold.

In addition, the takeover regulations also prescribe the circumstances and procedures for withdrawal of public announcement of intention and of offer for purchase of shares. It also stipulates the size of offer, mode of payment to shareholders on acquisition of shares and form/nature of security for performance of obligation under the public offer.

Guidelines have been provided to the acquirer, the target company and the manager to the offer on the contents and form of various statutory documents such as public announcement, public offer, offer timetable etc., required under the takeover ordinance and regulations through the various schedules attached to the takeover regulations.