The Securities and Alternate Fee of Pakistan (SECP) has directed all unlisted firms with share capital to transform their bodily shares into book-entry type earlier than endeavor any share-related transaction.
Underneath S.R.O. 328(I)/2026, firms planning share transfers, allotments, bonus points, rights points, buy-backs, or every other share transactions should exchange all bodily shares with digital information by means of the Central Depository System (CDS) inside 30 days of the notification.
Shareholders, transferors, transferees, and different involved events should guarantee all their shares are maintained in book-entry type previous to taking part in any such transaction.
The SECP emphasised that unlisted firms should adjust to all relevant rules, circulars, and tips issued by the Fee or the Central Depository. Cancelled bodily share certificates should be retained for ten years until in any other case directed by the Fee, a courtroom, or any competent authority.
Firms going through impediments, comparable to litigation or shareholding disputes, should report them to the SECP, which can grant applicable exemptions. Non-compliance could entice penalties beneath part 510(2) of the Firms Act, 2017.