ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has decided to allow companies to make payment of cash dividend to shareholders, who are Non-Resident Pakistanis having NRP Rupee Value Account (NRVA), with shareholding in companies registered with the commission.

However, the companies may make payment of cash dividend to such shareholders Non-Resident Pakistanis having NRP Rupee Value Account (NRVA) in a manner and within such time period as may be allowed by the State Bank of Pakistan (SBP).

The SECP has notified SRO 1113(I)/2020 to issue draft Amendment (Procedure of Payment of Cash Dividends) to the Companies (Distribution of Dividends) Regulations, 2017 (the Regulations), here on Monday.

Under the revised amendment, in case shares of a company, whether listed or not, are held by a non-resident shareholder having no designated bank account or Non-Resident Pakistanis having NRP Rupee Value Account (NRVA), the company may make payment of cash dividend to such shareholder in a manner and within such time period as may be allowed by the SBP.

Previously, the regulations said that in case, shares of a company, whether listed or not, are held by a non-resident shareholder having no designated bank account, the company may make payment of cash dividend to such shareholder in a manner and within such time period as may be allowed by the SBP.

The SRO 1113(I)/2020 issued by the SECP here on Monday states: "The following draft amendment to the Companies (Distribution of Dividends) Regulations, 2017 (the Regulations), proposed to be made by the Securities and Exchange Commission of Pakistan, in exercise of the powers conferred by sub-section (1) of section 512 read with section 242 and 243 of the Companies Act, 2017 (XIX of 2017) is hereby published, as a requirement of proviso to sub-section (1) of the said section 512, for information of all the persons likely to be affected thereby and notice is hereby given that comments, if any, received within fourteen days of the date of this notification will be taken into consideration, namely:- DRAFT AMENDMENT In the aforesaid Regulations, in regulation 4, sub-regulation (12), after the words "non-resident shareholder having no designated bank account" the following words shall be inserted "or Non-Resident Pakistanis having NRP Rupee Value Account (NRVA)."

Copyright Business Recorder, 2020