Karachi: Pakistan’s corporate regulator has announced major relief to accelerate Share Digitalization among unlisted companies. This move aims to reduce costs and encourage a smooth transition from physical share certificates to electronic records.
The Securities and Exchange Commission of Pakistan (SECP) confirmed that companies with paid-up capital up to Rs 25 million will not pay annual fees for one year. This waiver will help smaller firms shift toward digital compliance without financial pressure.
The regulator has also waived the security deposit and conversion charges for the first year. This step lowers the overall cost of Share Digitalization and supports faster adoption of the new system.
However, companies with paid-up capital above Rs 25 million will not receive a full exemption. These firms must continue paying their annual fee, although they will still benefit from other procedural improvements.
SECP clarified that even companies that voluntarily opt for Share Digitalization will receive the same financial relief. This approach ensures equal opportunity for firms that want to modernize their shareholding structure ahead of deadlines.
The regulator has made it mandatory for all unlisted companies to convert physical share certificates into book-entry form. It means companies can no longer rely on paper-based ownership records.
Authorities believe the shift will improve transparency and corporate governance. Digital records reduce the risk of fraud, misplaced certificates, and ownership disputes.
Companies issuing bonus shares or rights shares, or conducting buybacks, must complete Share Digitalization before proceeding. This requirement ensures accurate ownership tracking and smoother transaction processing.
SECP emphasized that digitized systems will strengthen investor confidence. So the electronic records offer better security, faster verification, and improved regulatory oversight.
Officials expect the reform to modernize Pakistan’s corporate environment. By cutting costs and simplifying procedures, SECP aims to create a more efficient and dispute-free share management system.
The initiative reflects Pakistan’s broader push toward digital transformation. With financial relief now in place, regulators anticipate a faster and wider adoption of Share Digitalization across the corporate sector.
