SECP proposes removal of foreign shareholding disclosure requirement

The Securities and Exchange Commission of Pakistan (SECP) has proposed removing the obligation for shareholders and company officers to report their foreign shareholdings under the Companies Act, 2017, by abolishing Section 452 of the law.

Under the current provision, substantial shareholders and officers must disclose their interests in foreign companies to the corporate regulator. The SECP says this requirement overlaps with reporting duties already enforced by the Federal Board of Revenue (FBR) and other authorities under tax and anti-money-laundering regulations, creating duplicate compliance obligations for companies.

To reduce regulatory overlap and administrative burden, the SECP has suggested that disclosure of foreign assets and ownership interests be governed solely by existing tax and financial reporting laws, rather than the Companies Act.

The proposal is part of broader efforts by the corporate regulator to amend corporate law and streamline regulatory processes affecting companies operating in Pakistan.