Karachi: The Securities and Exchange Commission of Pakistan (SECP) has issued a directive under Section 100 of the Securities Act, 2015, requiring Mughal Iron & Steel Industries Limited to modify its proposed Class C shares. This direction, dated February 19, 2025, follows a previous directive issued on January 29, 2025, and a subsequent meeting between the company representatives and the SECP on February 10, 2025.

According to the SECP, the company has demonstrated a willingness to address regulatory concerns by proposing adjustments to the features of its Class C shares. These modifications are intended to better align the company's capital structure with the principles of corporate governance, investor protection, and public interest. The SECP's directive mandates several specific changes to the Class C shares.

The adjusted structure requires that Class C shares be entitled to receive dividends, bonus shares, or rights shares declared by the company. Additionally, the voting power of all ordinary shares, based on the one-share one-vote principle, must constitute no less than 67% of the total voting power of the company's issued shares. Importantly, each Class C share is restricted to no more than five voting rights. Furthermore, the SECP has directed that Class C shares be listed and also participate in surplus assets in the event of the company's liquidation.

This directive comes as part of the SECP's ongoing regulatory oversight to ensure transparency and fairness in the market. According to information available from the Pakistan Stock Exchange (PSX), such directives are critical for maintaining investor confidence and ensuring that corporate entities operate within the legal frameworks established to safeguard shareholder interests.

The decision by the SECP reflects its commitment to uphold the principles of fairness and corporate governance in Pakistan's securities market, classified under the designated market category of Securities & Exchange Commission of Pakistan. The directive aims to ensure that Mughal Iron & Steel Industries Limited complies with the regulatory standards necessary for investor protection and market integrity.