Wednesday, October 20, 2021
spot_img

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

Advertisement

Zain Zubair
Zain Zubair is a staff writer for World News Observer. He is studying ACCA in Pakistan. Besides Accountancy and writing pieces, he loves cooking and nature photography. Zain has attended various modern journalism workshops. Contact: [email protected]
- Advertisement -

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

- Advertisement -
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
- Advertisement -
- Advertisement -

Latest News

0
Would love your thoughts, please comment.x
()
x