Company listing process rationalised

SECP rationalises list of documents needed to be submitted along with applications for listing on stock markets.

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has rationalised the list of documents which need to be submitted along with applications for listing on stock markets.

Under draft amendments to the Companies (Issue of Capital) Rules 1996, the number of documents required to be submitted to the exchanges has been reduced from 107 to 39 and the number of documents needed to be submitted to the SECP has been brought down from 32 to 14, the SECP announced on Friday.

Under the revised listing process, designed by the SECP in consultation with the stock exchanges over the last 12 months, the draft prospectus is submitted electronically to the exchanges and the SECP simultaneously for examination. “The revised process is more efficient and simpler,” the SECP said.

The SECP said it reviewed the draft amendments to the Companies (Issue of Capital) Rules 1996 (the CI Rule) in separate meetings with the Karachi Stock Exchange (KSE) and other stakeholders on Friday. The rules had already been notified on September 8 for soliciting public opinion.

Officials of the KSE, Lahore Stock Exchange, Central Depository Company, National Clearing Company, commercial banks, corporate brokerage houses, Investment Banks Association, Pakistan Banking Association and Insurance Association of Pakistan participated in the meetings. They gave suggestions to improve the process of listing of companies.

The meeting participants were informed that the Ballotters, Transfer Agents and Underwriters Rules 2001 and the guidelines for issue of commercial papers are being reviewed in consultation with the State Bank, and to regulate affairs of debenture trustees, regulations have also been drafted which will be shared for input. A framework for regulating affairs of consultants to the issues will also be designed.

Published in The Express Tribune, October 2^nd, 2010.