SECP Issues Draft Unlisted Companies, Regulations, 2022
Umer Jamshaid Published December 04, 2022 | 08:20 PM
ISLAMABAD, (UrduPoint / Pakistan Point News - 4th Dec, 2022 ) :The Securities and Exchange Commission of Pakistan (SECP) has approved the draft, "Unlisted Companies (Buy-Back of Shares) Regulations, 2022", detailing the procedures for the purchase of shares issued by unlisted public and private companies.
The proposed regulations will facilitate startups, and boost investor confidence by providing an easy exit option to the shareholders, said a press release issued here on Sunday.
The draft regulations provide eligibility criteria, procedures, and mechanisms to be adopted by unlisted companies to buy-back their issued shares.
The unlisted companies will also have to cancel the number of bought-back shares from the total issued shares.
The regulations also require the submission of the final report to the registrar after completion of the process of buy-back of shares.
The draft regulations propose the board of directors of a purchasing company to make a declaration to the effect that the company is capable of meeting its liabilities and will not be rendered insolvent for twelve (12) months from the date of declaration.
The Companies (Amendment) Act, 2021 has enabled all companies, including unlisted public and private companies to buy-back their shares. Previously only the listed companies were allowed to buy-back their issued shares.
The draft Regulations have been issued vide SRO 2066 (I)/2022, have been placed on SECP's website at https://www.secp.gov.pk/document/sro-2066-i-2022-draft-unlisted-companies-buy-back-of-shares-regulations-2022/?wpdmdl=46234.
Any suggestions or objections, if any, received within a period of fourteen (14) days from the date of publication, shall be taken into consideration by SECP.
Related Topics
Recent Stories
Senate continues discussion on Presidential address to Joint Sitting of Parliame ..
Masood Khan calls for Pak-US cooperation for regional peace
Interior Minister starts Margalla Trail Patrol for security
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 26 April 2024
Today Gold Rate in Pakistan 26 April 2024
ICC Womens T20 World Cup Qualifier, Match 2: Ireland Women open with Comfortable ..
Robinson, bowlers help New Zealand go 2-1 up against Pakistan
Shahzeb Chachar to hold khuli kachehri on April 26
Heatwave amid Israel's aggression in Gaza brings new misery, disease risk
Tourism must change, mayor says as Venice launches entry fee
Court adjourns Judicial Complex attack case till May 17
Nasreen Noori’s book ‘Popatan Jahra Khwab’ launched
More Stories From Business
-
Machinery equipment assembling grew by 70.98% in 08 months
19 minutes ago -
Gold rates up by Rs.2,500 per tola to Rs245,000
28 minutes ago -
Miner Anglo American rejects BHP's $38.8 billion takeover bid
59 minutes ago -
Exchange rates for currency notes
3 hours ago -
Foreign exchange rates
4 hours ago -
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 26 April 2024
4 hours ago
-
Today Gold Rate in Pakistan 26 April 2024
4 hours ago -
Chinese minister felicitates Ahsan Iqbal on reappointment as Planning minister
13 hours ago -
Pak-US officials engage to enhance trade, investment ties
14 hours ago -
Stocks fall as tech shares sink, US economy slows
15 hours ago -
Higher taxes, awareness help decrease cigarettes sale in Pakistan
16 hours ago -
Ahsan Iqbal chairs CPEC JWGs, 13th JCC review-meeting
16 hours ago