SECP Seeks Feedback on Enhancing Takeover Regulations
— January 9, 2025
ISLAMABAD (AIA) The Securities and Exchange Commission of Pakistan (SECP) has released a consultation paper inviting feedback on proposed improvements to the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017.
The proposed amendments aim to enhance the regulatory framework for takeover transactions of listed companies, with a focus on increasing transparency and protecting minority shareholder rights.
Key areas under review include streamlining timelines for public announcements, revising price determination criteria for both frequently and infrequently traded shares, and strengthening disclosure requirements for acquirers and listed companies.
Other proposals address voluntary offers, obligations of the manager to the offer (MTO), and mechanisms for managing indirect or chain acquisitions.
These recommendations were developed after initial consultations with stakeholders, including market experts, MTOs, law firms, chartered accountants, and listed companies. SECP is now broadening the consultation process to ensure wider participation and address evolving market needs.
The consultation paper, detailing the rationale for each proposed amendment, is available on the SECP website for public review and feedback.