ISLAMABAD (Dunya News) – The Securities and Exchange Commission of Pakistan (SECP), in an attempt to strengthen and maintain transparency in the process of capital formation, has proposed a redesign of the Companies (Further Issue of Shares) Regulations, 2020.
A concept paper, offering new modes and processes by which enterprises might raise money, has been put on SECP’s website for public feedback. According to worldwide best practices, the concept paper proposes that listed businesses issue rights shares under a framework of greater transparency.
In this regime, the emphasis is intensified on offering adequate information to investors, allowing them to make educated choices, strengthening investor protection. The proposed disclosure-based regiment would involve, the creation of an offering document with increased disclosures; obtaining public views from the Apex and front-line regulators, and publishing the final offering document after integrating the same, leading to the completion of the right issue.
In several countries, including Malaysia, Thailand, Singapore, and India, a disclosure-based system is currently regarded as the heart of any capital raising activity by listed firms.
The article also talks about a few things about publicly traded companies issuing shares other than through the exercise of stock options (ESOS) by employees, which is what the article is about.
