The Securities and Exchange Commission of Pakistan (SECP) has given 45 days to shareholders of listed companies to provide relevant details of their designated bank accounts for payment of cash dividends through electronic mode. The notification SRO 421(1)/2018 to this effect has been issued.
The period has been specified in terms of sub-regulation 7 of regulation 4 of the 2017 Companies (Distribution of Dividends) Regulations.
The aforesaid sub-regulation requires notification of the time requiring shareholders to provide requisite information, including name of bank, address of bank branch and international bank account number.
The period of 45 days shall expire on May 17, 2018. It has also being clarified that through this SRO a one-off time period has been specified within which shareholders of listed companies must submit requisite details of their bank accounts to listed companies.
It does not have any bearing on the already specified time of 15 working days, within which the companies are required to pay dividend after it is declared, in terms of regulation 3 of the regulations.
It is relevant to note that Section 243 of the 2017 Companies Act and Regulation 6 of the Regulations have already specified circumstances where companies can withhold payment of dividend with or without approval of the SECP.