Pakistan – SEC Proposed Changes to Takeover Regulations

Pakistan – SEC Proposed Changes to Takeover Regulations

On 18 August 2023, PAK SEC proposed revision to listed companies rules.

  • PAK SEC proposed amendments to the Listed companies (substantial acquisition of voting shares and takeovers) regulations, to establish a fair, transparent, and competitive framework for takeover transactions involving shares of listed companies.
  • Document dated 18 August 2023, received from PAK SEC 21 August, summarized 22 August.


  • Offer increased flexibility to minority shareholders of target company, providing them with choice of receiving their consideration in cash or securities with a cash alternative.
  • The criteria for the securities that can be offered as consideration are being refined.
  • Only shares of listed companies, listed debt instruments, and government securities with a remaining maturity of up to 364 days can be offered during public offers.
  • There are improvements in method of valuing the securities offered as consideration.
  • Only highly liquid securities will be accepted as collateral by the acquirer's manager.
  • Amendments also aim to define terms previously used in the regulations but not yet defined, enhancing clarity and consistent interpretation throughout the regulations.


  • The consultation is open for 14 days, i.e. 31 August 2023.