ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) is determined to facilitating minority shareholders and has decided to reduce turnaround time for payment of cash dividends to shareholders of listed organizations from 15 days to 03 working days only.
SECP has released revisions to the Corporations (Distribution of Dividends) Rules, 2017, for public consultation.
SECP assumes that the planned time of three working days is sufficient to move the cash dividend from the financial account of the corporation to the bank accounts of their respective owners.
Section 242 of the Companies Act 2017 allows all public companies to pay cash dividends only by electronic means directly to the shareholder’s designated bank accounts.
Since the transmission of cash dividends by IBANs is secure, cost-effective and productive, all shareholders are expected to provide their IBANs to their respective companies for payment of cash dividends.