SECP Cracks Down on Companies, Issues PKR 4.75 Billion in Penalties

The Securities and Exchange Commission of Pakistan (SECP) has imposed PKR 4.75 billion in penalties on companies for violations of the Companies Act and other regulatory requirements as part of its drive to improve corporate governance.

The regulator decided 531 pending enforcement cases between February and June. PKR 4.73 billion fines were imposed on private and unlisted companies and PKR 900,000 on violations on the part of 99 listed companies, which included delayed board meetings and failing to appoint women and independent directors.

The SECP also imposed a PKR 4 billion penalty on delay in settlement of claims by insurance companies, took action against insurance companies regarding solvency issues, and fined three companies for running an investment scheme falsely and took action against companies for violation of anti-money laundering (AML) and takeover regulations.

Dr Kabir Sidhu, chairman of the Securities and Exchange Commission (SECP), said that the commission is working tirelessly to enhance transparency, safeguard the rights of the minority investors and promote successful enforcement to help build investor confidence in the corporate sector of Pakistan.