Regulations amended for rights shares
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has amended the Companies (Further Issue of Shares) Regulations 2020.
As a result, the requirement for a clean CIB report will not apply if the relevant persons provide a No Objection Certificate (NOC) from the financial institution concerned regarding the proposed rights issue.
The SECP has said that the amendment will facilitate capital raising by listed companies while maintaining adequate disclosure requirements for investors.
The amendments address a challenge faced by listed companies when raising further capital from existing shareholders through a rights issue.
Under the previous framework, listed companies were prohibited from announcing a rights issue if the company, its sponsors, promoters, substantial shareholders, or directors had any overdue amounts or defaults appearing in their Credit Information Bureau (CIB) report.
Published in Dawn, January 20th, 2026