ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) concluded 1,761 adjudication proceedings during the financial year 2024–25, imposing total penalties of Rs425 million as part of its enforcement activities across the corporate and financial sectors.
Among the decided cases, 267 involved publicly listed companies, with common violations relating to unauthorized investments in associated firms, lapses in financial reporting, and weak corporate governance practices. Action was also taken against 49 Non-Banking Finance Companies (NBFCs) and 43 entities for non-compliance with anti-money laundering and counter-terrorism financing regulations.
In the brokerage industry, 27 cases relating to takeover law violations were concluded. SECP issued penalties alongside directives for corrective action. The insurance sector saw the resolution of 14 cases, with penalties levied on companies for shortcomings in reinsurance arrangements, solvency margins, and collateral compliance on guarantees.
In the unlisted corporate sector, 679 penalty orders were issued for breaches of statutory obligations. Another 682 cases were closed without monetary penalties after the companies rectified the defaults, in line with SECP’s efforts to encourage voluntary compliance.
The regulator reiterated its commitment to protecting the interests of investors, including minority shareholders, unitholders, policyholders, and creditors, and said it would continue to refine its enforcement approach in line with the evolving financial landscape.
