The Securities and Exchange Commission of Pakistan has introduced a fee relief package to encourage unlisted companies to convert their physical shares into digital form.
According to the regulator, companies with a paid-up capital of up to Rs25 million will not have to pay annual fees for one year if they digitize their shares. The SECP has also waived security deposits and conversion fees during the first year for these companies.
For companies with paid-up capital above Rs25 million, only the annual fee will apply, the commission said.
The SECP added that companies that voluntarily change their physical shares into digital form will also benefit from this fee relief.
The regulator has made it compulsory for unlisted companies to convert their physical shares into book-entry, or digital, form. It also stated that companies must issue shares in digital form for corporate actions such as bonus shares, rights issues, and share buybacks.
The SECP said that shifting to digital shares will reduce disputes and improve the overall efficiency of the system.
