SECP offers fee relief to unlisted companies

SECP offers fee relief to unlisted companies

SECP office Karachi. File Photo

February, 27 2026

Karachi (Web Desk): The Securities and Exchange Commission of Pakistan (SECP) has introduced a fee relief package encouraging unlisted companies to convert physical shares into digital form.

Under the initiative, companies with paid-up capital up to Rs25 million will receive a one-year waiver on annual fees for digitizing shares. The step is taken to modernize the corporate sector and improve transparency.

The regulator also removed security deposits and conversion charges during the first year, making the transition easier for smaller businesses.

For companies with paid-up capital above Rs25 million, only the annual fee will apply. The SECP clarified that firms voluntarily shifting to digital shares will also benefit from the relief, increasing participation in the conversion process.

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The regulator has already made it mandatory for unlisted companies to convert physical shares into book-entry digital form. Digital shares will also be required for corporate actions such as bonus shares, rights issues, and share buybacks, ensuring smoother transactions.

Officials believe the move will reduce ownership disputes, strengthen record keeping, and make the corporate system faster and more reliable for investors and businesses.

Separately, the SECP reported a strong 29% increase in new company registrations during the first half of the current fiscal year. A total of 21,668 companies were registered, contributing paid-up capital of Rs30.7 billion and pushing the total number of registered firms to 279,724.

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The IT and e-commerce sector led the expansion with 4,277 new companies, highlighting Pakistan’s growing digital economy and increasing entrepreneurial activity.

Foreign investment also played a role, with 524 new companies receiving overseas funding worth Rs1.26 billion. China remained the largest contributor, accounting for 71% of foreign investment in newly registered firms.

SECP officials say the growth reflects improving investor confidence, stronger regulatory oversight and better ease of doing business, particularly in technology-focused industries.