SECP mandates digital conversion of physical shares for non-listed companies
Business
SECP orders non-listed companies to convert physical shares to electronic form, ensuring secure ownership, faster transactions, reduced fraud risk, and usability as bank collateral.
KARACHI (Dunya News) – The Securities and Exchange Commission of Pakistan (SECP) has announced that physical shares of non-listed companies must now be converted into electronic form through the Central Depository System (CDS).
Under the new system, all rights issues, bonuses, buybacks, and share transfers must be executed digitally.
SECP says the move will eliminate risks of forgery, theft, or loss associated with physical certificates, while keeping ownership records secure. Electronic shares will allow faster transactions, instant settlements, and can be used as collateral for bank loans.
Companies holding physical shares must digitize them before any future transactions, as all share dealings will now be conducted via CDS.
