ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has decided to simplify process of rehabilitating distressed entities by providing greater flexibility for Corporate Restructuring Companies (CRCs).
In this regard, the SECP on Wednesday proposed amendments to the Corporate Restructuring Companies Rules, 2019.
In a bid to streamline investment processes for Corporate Restructuring Companies (CRCs) and provide greater flexibility for restructuring operations, the Securities and Exchange Commission of Pakistan (SECP) has proposed amendments to the Corporate Restructuring Companies Rules, 2019.
The draft amendments have been placed on SECP’s website for public consultation.
Key proposed changes include procedures for raising funds and extending financing for acquisition, trust liquidation, composition and governance of the Corporate Restructuring Board (CRB) and its functions and budgetary allocations.
The proposed amendments will simplify the process of rehabilitating distressed entities by providing greater flexibility for CRCs to undertake agency functions for recovery and restructuring. They will also streamline the process of getting regulatory approvals for Scheme of Arrangement from the CRB.
The amendments prescribe procedures for the composition, appointment, and governance of the CRB, including a Code of Conduct for its members and staff etc. These measures are aimed at ensuring a diverse representation of experts from relevant fields, transparency and accountability in the decision-making process.
Under the revised procedure, the trust may be liquidated by occurrence of any of the specified events subject to approval of three-fourth majority of beneficiaries of the trust. They shall be made out and submitted to the Corporate Restructuring Board, along with the scheme, a solemnly affirmed statement as to the affairs of the principal obligor which shall contain the minimum particulars.
Copyright Business Recorder, 2023
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