BankIslami Urges Shareholders to Convert Physical Shares and Update Details

Karachi, BankIslami Pakistan Limited has issued a reminder to its shareholders regarding the conversion of physical shares into book entry form and the necessity to update their bank account details along with other mandatory information. This notice is in compliance with the directives from the Securities and Exchange Commission of Pakistan (SECP) and the provisions of the Companies Act, 2017, aiming to streamline and secure the process of shareholding and dividend distribution.

According to SECP’s instructions, encapsulated in a letter dated March 26, 2021, all listed companies are required to convert existing physical shares into book entry form. This measure is intended to facilitate shareholders by making their shares readily available for sale and purchase, ensuring instant credit of entitlements such as bonus and rights shares, and eliminating the risk of share loss.

Furthermore, pursuant to Section 242 of the Companies Act, 2017, and subsequent SECP notifications, it is mandatory for listed companies to disburse cash dividends directly into shareholders’ bank accounts electronically, instead of issuing physical dividend warrants. This move is aimed at enhancing the efficiency of dividend payments and ensuring security.

Shareholders who have yet to provide their International Bank Account Number (IBAN) along with other necessary details such as CNIC number, address, email, and contact information are urged to do so. This requirement not only complies with regulatory mandates but also prevents any inconvenience to shareholders in the future.

BankIslami has made provisions for shareholders to collect unclaimed physical share certificates from the bank’s share registrar for conversion into book entry form. Shareholders may seek assistance from their brokers, participants of the Central Depository Company (CDC), or directly from the CDC’s Investor Account Services Department for opening a CDC account and for updating their details to meet the regulatory requirements.

This announcement underscores BankIslami’s commitment to compliance with SECP’s regulations and to ensuring the convenience and security of its shareholders’ investments.