The Securities and Exchange Commission of Pakistan (SECP) reported that its Adjudication Division concluded 1,761 adjudication proceedings in the financial year 2024-25, imposing aggregate penalties of PKR 425 million. The caseload included 267 publicly listed companies, with key non-compliances cited as unauthorized investments in associated companies, weak corporate governance, and financial reporting lapses. Action was also taken against 49 Non-Banking Finance Companies, and 43 companies were addressed for breaches of the anti-money laundering and counter-terrorist financing (AML/CFT) Regulatory Framework, resulting in judicial penalties. In the brokerage sector, 27 cases relating to takeover law violations were resolved, alongside directives to rectify issues, while 14 insurance-sector proceedings concluded with penalties for failures relating to reinsurance arrangements, solvency thresholds, and collateral requirements for insurance guarantees. In the unlisted segment, SECP issued 679 penalty orders for breaches of mandatory statutory requirements and closed 682 cases without monetary penalties where defaults were rectified.
Securites & Exchange Commission of Pakistan 2025-07-07
Securities and Exchange Commission of Pakistan concludes 1,761 adjudication proceedings in 2024-25 and imposes PKR 425 million in penalties
The Securities and Exchange Commission of Pakistan concluded 1,761 adjudication proceedings in FY 2024-25, imposing penalties totaling PKR 425 million. Key issues included unauthorized investments, weak governance, and financial reporting lapses among 267 publicly listed companies, with actions against Non-Banking Finance Companies and AML/CFT breaches. The SECP also addressed violations in the brokerage and insurance sectors, issuing penalties and directives for compliance.