Islamabad: In bid to streamline investment processes for Corporate Restructuring Companies (CRCs) and provide greater flexibility for restructuring operations, Securities and Exchange Commission of Pakistan (SECP) proposed amendments to Corporate Restructuring Companies Rules, 2019. 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 Corporate Restructuring Board (CRB) and its functions and budgetary allocations.

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 process of getting regulatory approvals for Scheme of Arrangement from CRB.

Amendments prescribe procedures for composition, appointment and governance of CRB, including Code of Conduct for its members and staff etc. These measures are aimed at ensuring diverse representation of experts from relevant fields, transparency and accountability in decision-making process.

Published in The Daily National Courier, January, 26 2023

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