SECP seeks comments on conversion of shareholding into book entry form

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Staff Reporter

Islamabad

The Securities and Exchange Commission of Pakistan (SECP), to minimize shareholding disputes and make the entire process of holding, monitoring and transferring of shares much easier, cost-efficient and transparent, is considering a proposal requiring all the public listed, public unlisted, public interest and private limited companies to have their shares in book-entry form in compliance with Section 72 of the Companies Act, 2017.

Shares held in book-entry form shall have the same rights and privileges as shares held in physical certificate form.

Once notified, all companies, required to replace their physical shares with book-entry form, shall apply to a depository, licensed by the SECP for conversion of physical shares and further issuance of shares in the book entry form.

The depository shall prescribe procedures for such conversion and issuance of shares including documentation required, process to be followed and applicable fee/ charges.