Islamabad, Jan 8: The Securities and Exchange Commission of Pakistan (SECP) has issued a consultation paper seeking public feedback on potential improvements to the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017. These modifications are aimed at strengthening the regulatory framework surrounding takeover transactions of listed companies, with a focus on increasing transparency and introducing measures to protect the rights of minority shareholders.
Key Areas of Proposed Changes
The key areas of improvement outlined in the consultation paper include proposals for streamlining public announcement timelines, revising price determination criteria for both frequently and infrequently traded shares, and enhancing disclosure requirements for both acquirers and listed companies. The SECP is also exploring provisions for voluntary offers, the obligations of the Manager to the Offer (MTO), and mechanisms for handling indirect or chain acquisitions.
These proposals have been developed after initial consultations with various stakeholders, including market experts, MTOs, law firms, chartered accountants, and listed companies. The SECP is now expanding the scope of consultations to ensure a wider participation in finalizing the proposed amendments to better meet the evolving needs of the market and its stakeholders.
The full consultation paper, along with the rationale for each suggested change, is available on the SECP website for public review and feedback.
