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A Disclosure Statement is a formal document that openly shares important facts about a business, investment, or transaction in Pakistan. It helps companies meet their legal duty to be transparent with stakeholders, especially under the Companies Act 2017 and Securities regulations. Think of it as a detailed "here's what you need to know" summary that protects both the company and its stakeholders.

These statements cover everything from financial risks and conflicts of interest to material business relationships. Banks use them when offering new products, listed companies include them in their annual reports, and investment firms must provide them to potential clients. The Securities and Exchange Commission of Pakistan (SECP) often requires specific disclosures to ensure investors can make informed decisions.

Use a Disclosure Statement when your business needs to share significant information that could affect stakeholders' decisions. In Pakistan, this typically happens during IPOs, mergers, major business changes, or when launching new financial products. The SECP requires these statements for listed companies making material announcements or when reporting substantial shareholding changes.

Common triggers include raising capital from investors, introducing new board members, changing company ownership, or revealing potential conflicts of interest. Banks and financial institutions need disclosure statements when offering investment products, while public companies must include them with quarterly and annual reports. Early preparation helps avoid regulatory penalties and builds trust with stakeholders.

• Financial Disclosure Statements: Required for listed companies on PSX, detailing financial positions, risks, and material changes
• Product Disclosure Statements: Used by banks and financial institutions to explain investment products and associated risks
• Corporate Disclosure Statements: Cover ownership changes, board appointments, and significant business developments
• Related Party Disclosure Statements: Detail business relationships and transactions between connected entities
• Risk Disclosure Statements: Outline specific risks in investment products, particularly common in securities trading

• Corporate Officers: Draft and verify Disclosure Statements, ensuring compliance with SECP requirements
• Legal Counsel: Review and validate statements for legal accuracy and regulatory compliance
• Company Directors: Sign off on disclosures and bear responsibility for their accuracy
• Financial Institutions: Prepare disclosures for investment products and banking services
• Listed Companies: Submit regular disclosures to PSX and SECP about material changes
• Investment Advisors: Use disclosures when offering financial advice or products to clients
• Compliance Officers: Monitor and ensure timely filing of all required disclosures

• Basic Information: Gather company details, registration numbers, and relevant business licenses
• Material Facts: Document all significant information that could influence stakeholder decisions
• Financial Data: Compile current financial statements, projections, and risk assessments
• Regulatory Requirements: Check SECP guidelines and PSX rules for your specific disclosure type
• Supporting Documents: Collect board resolutions, audit reports, and relevant contracts
• Internal Review: Have key departments verify information accuracy within their domains
• Format Check: Use our platform's templates to ensure all mandatory sections are included
• Final Validation: Review against recent regulatory updates before submission

• Company Information: Full legal name, registration number, registered office address
• Purpose Statement: Clear explanation of why this disclosure is being made
• Material Information: All facts that could affect stakeholder decisions
• Risk Factors: Detailed description of business, market, and operational risks
• Financial Details: Current financial position, projections, and relevant metrics
• Related Parties: Information about connected entities and transactions
• Compliance Statement: Confirmation of adherence to SECP regulations
• Authentication: Signatures of authorized officers, company seal, and date
• Disclaimer: Standard legal disclaimers and limitations of liability

A Disclosure Statement differs significantly from a Non-Disclosure Agreement. While both deal with information sharing, they serve opposite purposes and operate differently under Pakistani law. A Disclosure Statement actively shares information with stakeholders, while an NDA restricts information sharing.

• Purpose: Disclosure Statements inform stakeholders about material facts and risks, while NDAs protect confidential information from unauthorized disclosure
• Legal Obligation: Disclosure Statements often fulfill regulatory requirements (especially for SECP compliance), whereas NDAs are voluntary contractual arrangements
• Timing: Disclosure Statements are typically issued at specific business milestones or reporting periods; NDAs are signed before sharing sensitive information
• Enforcement: Disclosure Statements create transparency obligations and liability protections; NDAs create confidentiality obligations with specific penalties for breach
• Scope: Disclosure Statements cover broader business aspects and public information; NDAs focus specifically on protecting confidential information