SECP disposes of 98% adjudication caseload, imposes Rs4.73bn in penalties

By The Securities and Exchange Commission of Pakistan (SECP) disposed of 98% of its adjudication caseload, issuing decisions in 573 cases and imposing penalties exceeding Rs4.73 billion for violations of the Companies Act and other applicable laws. Following the appointment of SECP Chairman Dr Kabir Ahmed Sidhu, the regulator further strengthened its adjudication function, the SECP said in a statement on Saturday. Of the 969 Adjudication Recommendation Notes available for assessment, 953 were reviewed, while proceedings in 573 cases were concluded through the issuance of reasoned orders. The remaining recommendations for initiating legal proceedings were subsequently processed through strengthened oversight and effective case management, resulting in the clearance of the entire adjudication backlog. The proceedings involved listed, unlisted and private companies, as well as regulated entities including securities brokers, insurance companies and Non-Banking Finance Companies. The violations related to the Companies Act, the Securities Act and other applicable laws and regulatory requirements. The commission also placed particular emphasis on compliance by state-owned enterprises and issued 117 adjudication orders concerning violations of applicable corporate and regulatory requirements by SOEs. Major violations included failure to submit financial statements and statutory information, delays in holding annual general meetings, non-disclosure of mandatory information, breaches of financial-reporting and corporate-governance requirements, and failure to appoint female and independent directors. Chairman SECP Kabir Ahmed Sidhu said the commission was ensuring timely, transparent and evidence-based decisions in all adjudication matters. He said the SECP's priorities include expeditious disposal of pending proceedings through effective case management, strengthening the rule of law, promoting a culture of regulatory compliance among companies and protecting the interests of investors, particularly minority shareholders.