Non-listed firms to maintain online presence

SECP issues directives for companies with paid-up capital above Rs200m.

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) directed all non-listed companies, having paid-up capital of Rs200 million and above to maintain a functional website with effect from January 1, 2013. This initiative is aimed at providing investors with a cost-effective and easy access to information about listed businesses in Pakistan.

The requirement is in line with current global technological development, to give investors, shareholders and the public, an easy access to information.

The SECP anticipates that the website with up-to-date information will serve as a valuable tool for current and potential investors for making informed decisions.

An updated website shall be mutually beneficial for the companies, providing them with an effective platform to disseminate relevant information to the stakeholders and seek their feedback wherever required.

The websites are required to disclose information about the companies’ profile, contact information of board of directors and financial and regulatory details. This includes financial reports as well as important announcements disclosed on the proposed websites.

Companies can also effectively market their products and inform their prospective clients about their achievements, their affiliations with trade bodies and also issue any clarification through their websites.

The aforementioned notification is another stride towards aligning participants of capital market with global technological progress and international best practices. The SECP had already made it mandatory for all listed companies to maintain functional websites.

Published in The Express Tribune, December 12^th, 2012.