SECP disposes of 573 cases; imposes fines of more than Rs 4.73 billion

Securities and Exchange Commission of Pakistan eliminates 98 percent backlog of adjudication cases and issues decisions

Islamabad: SECP has imposed fines of more than Rs 4.73 billion while disposing of 573 cases.

Securities and Exchange Commission of Pakistan has eliminated 98 percent backlog of adjudication cases and issued decisions in 573 cases on violations of Companies Act and other relevant laws.

In these cases, fines totaling more than Rs 4.73 billion have been imposed.

After appointment of Chairman SECP Dr. Kabir Sidhu, Commission's Adjudication Department has been further strengthened. The department completed review of 953 out of 969 adjudication recommendation notices and completed proceedings in 573 cases and issued decisions.

According to SECP, remaining recommendations regarding initiation of legal proceedings have also been disposed of through better monitoring and effective case management, after which all backlog of Adjudication Department has ended.

These fines were imposed on listed, unlisted and private companies as well as securities brokers, insurance companies and non-banking finance companies for violations of Companies Act, Securities Act, other laws and regulatory codes.

In cases, special attention was also given to violations of applicable corporate and regulatory requirements by state-owned companies. In this regard, 117 decisions were issued.

According to SECP, cases included violations of Companies Act, securities laws and Anti-Money Laundering regulatory framework. Important violations included non-submission of financial statements and legal information, failure to hold annual meeting on time and non-disclosure of mandatory information.

Other violations included non-compliance with financial reporting and corporate governance requirements, while non-appointment of women and independent directors was also included.

Chairman SECP Dr. Kabir Sidhu said that timely, transparent and evidence-based decisions are being ensured in all adjudication matters. He said that speedy disposal of pending cases and ensuring rule of law through effective case management are priorities of Commission.

Dr. Kabir Sidhu said that promoting culture of compliance in companies and protecting interests of investors, especially minority shareholders, is also among top priorities of Commission.