The SECP has proposed to change definition of "paying agent" under the Companies (Distribution of Dividends) Regulations, 2017.
At present, "paying agent" means a bank, any approved payment service provider or a central depository appointed by a company for making payment of cash dividend directly into the designated bank account of entitled shareholder. It is proposed that the under revised definition, 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 is the text of the SRO. 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: In the aforesaid regulations, in regulation 2, in sub-regulation (1), in clause (vi) the words "or a central depository" shall be omitted.