Islamabad, Feb 25: The Securities and Exchange Commission of Pakistan (SECP) has introduced significant amendments to the regulations governing unlisted companies, allowing them to issue shares to investors beyond their existing shareholders. This change marks a departure from previous rules that had restricted private companies from seeking investments from external sources.
The updated capital issue guidelines now enable unlisted companies to raise funds from new investors, addressing the growing need for capital to support working capital requirements, the development of innovative products, and business expansion efforts. The reform is expected to enhance access to finance, particularly benefiting startups and organizations looking to formalize their assets and incorporate them into company structures.
The SECP clarified that the revised rules allow companies to issue additional shares for a variety of purposes, such as debt repayment, business growth, ownership diversification, meeting regulatory compliance, or offering employee stock options. By opening up the opportunity to attract a broader pool of investors and accept investments in forms other than cash.
The amendments aim to promote corporate growth, increase market participation, and create more dynamic business environments in the country. This move is expected to be a key driver of innovation and investment in the Pakistani business landscape.
