Karachi, Trust Securities and Brokerage Limited (TSBL) has issued a crucial advisory to its shareholders, urging those holding physical share certificates to convert them into Book Entry Form. This conversion initiative aligns with regulatory requirements and is in compliance with Section 72 of the Companies Act, 2017.
The Securities and Exchange Commission of Pakistan, in its letter No. CSD/ED/MISC/2016-639-640 dated March 26, 2021, has stipulated that listed companies, including TSBL, are obligated to replace their existing physical shares with Book Entry Form to meet regulatory standards.
Shareholders who choose to convert their physical shares into Book Entry Form stand to benefit in several ways, including access to readily tradable shares, potentially better rates during share transactions, instant credit of entitlements such as bonus shares and rights shares, and mitigating the risk of losing physical share certificates.
TSBL's management emphasizes the importance of this conversion not only for regulatory compliance but also for the convenience and security it offers to shareholders. By converting to Book Entry Form, shareholders will have an electronic record of their holdings, reducing the risk associated with physical documents.
For shareholders who have not yet provided mandatory information such as CNIC number, address, email address, contact mobile/telephone number, International Bank Account Number (IBAN), etc., TSBL advises immediate contact with their respective brokers, CDC Participants, CDC Investor Account Service Providers, or Share Registrar. This will facilitate the opening of a Central Depository System (CDS) Account and the subsequent induction of physical shares into Book Entry Form.
This proactive measure ensures compliance with Section 119 of the Companies Act, 2017, and Regulation 19 of the Companies (General Provisions and Forms) Regulations, 2018, and helps prevent any potential non-compliance and inconvenience in the future.
TSBL remains committed to serving its shareholders' interests and complying with all regulatory requirements. The company encourages all eligible shareholders to undertake the conversion process promptly, as it not only aligns with legal mandates but also enhances the overall shareholder experience and security.