On February 20, 2026, the Securities and Exchange Commission of Pakistan (SECP) announced a significant reform to digitize share ownership for unlisted companies, transitioning from physical share certificates to an electronic book-entry system. This initiative, part of a broader effort to modernize Pakistan's corporate framework, aims to enhance transparency and investor protection. The SECP stated that this move will 'eliminate risks associated with paper certificates' and will 'significantly reduce the risk of fraudulent transfers and related litigation.' The new regulations will require all existing unlisted companies to convert their physical shares into electronic form before conducting any share-related transactions. This transition is expected to improve regulatory oversight and corporate governance among unlisted firms, as well as reduce administrative costs and paperwork. Notably, the SECP has already mandated that newly incorporated unlisted companies issue shares exclusively in electronic form, marking a decisive shift towards a more modern corporate structure in Pakistan.