Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has directed Mughal Iron & Steel Industries Limited to modify its proposed Class C shares, aiming to better align the capital structure with corporate governance principles. This directive follows a meeting between the company representatives and SECP officials on February 10, 2025.

The SECP's directive comes as a continuation of a previous order issued on January 29, 2025, under Section 100 of the Securities Act, 2015. The commission expressed approval of the company's positive attitude and willingness to address concerns related to shareholder rights and investor protection.

According to the SECP's directive, the Class C shares will be entitled to dividends, bonus shares, or rights shares declared by the company. The voting power of ordinary shares will maintain a minimum of 67% of the total voting power, adhering to the one-share one-vote principle. Additionally, each Class C share will have a maximum of five voting rights. Furthermore, the SECP mandates that the Class C shares be listed and participatory in surplus assets upon liquidation.

According to information available from the Pakistan Stock Exchange (PSX), the directive is expected to impact the designated market category of Mughal Iron & Steel Industries. The SECP has instructed the company's Board of Directors to include these modifications in the final right offer document, ensuring compliance with the outlined features.

The SECP's intervention underscores the regulatory body's commitment to upholding transparency and fairness in the corporate sector. The modifications are designed to enhance investor protection and ensure the company's adherence to corporate governance standards.