The Securities and Exchange Commission of Pakistan (SECP) has significantly enhanced its regulatory oversight in the corporate sector, imposing penalties totaling Rs. 962 million in the first half of the fiscal year 2024-25.
This action comes as part of its efforts to ensure compliance and transparency through its centralized adjudication function, which adjudicated 1,849 cases of violations.
Key enforcement actions included imposing hefty penalties for violations of the Companies Act, 2017. Notably, the SECP targeted companies unlawfully accepting public deposits (except for banks) under Section 84, leading to penalties of Rs. 581.50 million and disqualifying directors from office for five years. Additionally, listed companies faced fines of Rs. 1.750 million for unauthorized investments under Section 199.
Digital lending violations also saw strict penalties, with the SECP imposing Rs. 13.265 million in fines for non-compliance with laws. Furthermore, 21 orders were issued under AML/CFT Regulations 2020, penalizing companies Rs. 14.66 million for deficiencies in anti-money laundering and counter-financing of terrorism processes.
The SECP’s actions extended to insurance companies and takaful operators, where eight cases were initiated for violations like inadequate bookkeeping and insufficient collateral against insurance guarantees.
Through these rigorous enforcement measures, the SECP underscores its commitment to a transparent, compliant, and robust corporate sector, while also emphasizing the importance of digitization and a business-friendly environment.
