ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has changed the definition of the “paying agent” to be appointed by the companies for the distribution of the dividend payable in cash to the shareholders.

The SECP issued a SRO 809 (I)/2022, here on Friday to amend the Companies (Distribution of Dividends) Regulations, 2017.

Previously, the “paying agent” means a bank, any approved payment service provider appointed by a company for making payment of cash dividend directly into the designated bank account of entitled shareholder.

Following revision of the definition, now the “paying agent” means a bank or any entity including a share registrar and a central depository appointed by a company and having relevant approval of the State Bank of Pakistan (SBP) for making payment of cash dividend directly into the designated bank account of entitled shareholder.

Under the regulations, the chief executive officer of every company is responsible to make the payment of cash dividend within a period of 15 working days from the date of its declaration.

A company may appoint its share registrar or a paying agent for the distribution of the dividend payable in cash. Provided that banks may not be required to appoint a paying agent and may itself assume functions and responsibility of paying agent provided in these regulations.s added.

Copyright Business Recorder, 2022