SECP Slashes Share Issuance Timelines in 2025

Islamabad, July 04, 2025, 04:13 PM PKT — The Securities and Exchange Commission of Pakistan (SECP) has unveiled draft amendments to the Companies (Further Issue of Shares) Regulations, 2020, slashing bonus share crediting timelines from 85 days to 11 days—an 87% reduction—and right share issuance from 181 days to 50 days—a 72% cut, per a Thursday press release. This bold initiative aims to boost market efficiency and accelerate capital mobilisation, now open for public consultation until July 17, 2025 at capitalissuefeedback@secp.gov.pk.

The amendments stem from extensive consultations with Pakistan Stock Exchange (PSX), Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL), issue consultants, legal experts, and financial advisors, backed by a consultation paper and in-person/online sessions to refine proposals. Additional changes ditch the Urdu draft offer document requirement and add supplementary information for right offer documents, enhancing processing speed and administrative efficiency. Full details are on the SECP website.

The SECP stresses a transparent, inclusive rulemaking process, but web context flags past regulatory delays (e.g., 20% compliance lag, web ID: 0), while posts found on X show optimism—some hail efficiency, others question implementation. Critically, the narrative of “market enhancement” may mask enforcement risks—web data points to capacity constraints, and X sentiment suggests distrust in timely execution, hinting at potential hurdles.