Islamabad, Feb 21: The Securities and Exchange Commission of Pakistan (SECP) has introduced four draft guidelines aimed at improving regulatory clarity and corporate governance for unlisted companies. These guidelines cover Capital Issue, Employee Stock Option Schemes (ESOS), Stock Splits, and the Submission of Applications for Registration and Renewal as an Intermediary.
According to an SECP statement, these guidelines were developed in response to frequent stakeholder queries and challenges faced by businesses. They are designed to assist unlisted companies in raising capital, structuring employee incentives, and managing capital restructuring through stock splits. The initiative aligns with SECP’s broader goal of enhancing corporate transparency and governance in Pakistan’s evolving financial landscape.
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The guidelines outline essential steps for capital issuance, employee stock options, and stock splits, ensuring that companies comply with existing regulatory frameworks. SECP believes that by following these recommendations, unlisted companies can improve their financial strategies, reward employees effectively, and strengthen their overall corporate structure.
In addition, SECP has also drafted guidelines for intermediaries seeking registration or renewal and has made them available on its website for public consultation. These guidelines provide clarity on the application and renewal process, reinforcing regulatory compliance and transparency.
The commission emphasized that these guidelines serve as supplementary documents and do not replace existing legal obligations. To make them more practical and stakeholder-friendly, SECP has launched a public feedback process, inviting stakeholders to review and submit their comments by March 10, 2025.
To further facilitate understanding, SECP will conduct webinars for key stakeholders in the first week of March, ensuring effective implementation and engagement. By introducing these measures, SECP aims to streamline financial regulations, support corporate growth, and create a more transparent and structured business environment in Pakistan.
