The Presidents/ Chief Executives

All Banks/ Microfinance Banks/DFIs

Dear Sirs/Madams,

Buy-Back of Shares by Listed Companies

1. The listed companies under SECP’s Listed Companies (Buy-back of shares) Regulations 2016 are permitted to purchase their own shares subject to certain terms/ conditions. The share so purchased can either result in cancellation of paid up capital of the company or be held as ‘Treasury Shares’.
2. The Banks/DFIs/MFBs being custodian of depositors’ money and key financial intermediaries have an imperative role in the economy. Therefore, the central banks have a comprehensive legal and regulatory framework, including capital related requirements for such institutions, in order to ensure soundness and stability of the financial system.
3. Banks/DFIs/MFBs, henceforth, are advised to obtain prior written permission of State Bank of Pakistan before initiating any arrangement of buy-back of their own shares. Any deviation or non-compliance of the above instructions shall attract punitive action under the relevant legal provisions.

Please acknowledge receipt.