ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Tuesday proposed to reduce time limit to three days for making payment of cash dividends.
The SECP issued SRO 229(I)/2021 dated February 18, 2021 to introduce draft amendment in the Companies (Distribution of Dividends) Regulations, 2017.
According to the draft an amendment has been proposed to Regulation 3 of the Companies (Distribution of Dividends) Regulations, 2017. Following amendment has been proposed as:
“Period for making payment of dividends: Subjection to Section 243 of the Act, the chief executive officer of every company is responsible to make the payment of cash dividend, within a period of three working days from the date of its approval by the:
(i) shareholders in general meeting, in case of final dividend; and
(ii) board, in case of interim dividend.”
At present the chief executive officer of every company is responsible to make the payment of cash dividend within a period of fifteen working days from the date of its declaration.
The SECP invited comments from stakeholders on the draft amendment to be submitted within 14 days of the date of the SRO.