SECP notifies Listed Companies “(Buy-back of Shares) Regulations, 2019”

The SECP notified Listed Companies “(Buy-back of Shares) Regulations, 2019” on May 23, 2019 after a series of meetings between different stakeholders.

A draft of the Regulation was shared by the SECP post feedback from all stakeholders and a notification was issued following that.

Some of the major changes made by the Commission in these regulations are: –

 For Eligibility Criteria

• The condition of being a margin eligible security for past one year have been waived,
• Need for a certificate from the auditor asserting the availability of funds removed,
• Requirement of NOC from the creditors have been abolished, and
• Obligation to buy shares with cash and distributable profits have been removed.

For disposal of Treasury shares

• Volume and price restrictions have been removed, and
• The company does not require a special resolution from its members for disposal of Treasury shares.

Read also: SECP measures for capital market stability