Securities and Exchange Commission of Pakistan intensifies penalty recovery drive after recovering PKR 26 million in FY 2024-25

The Securities and Exchange Commission of Pakistan (SECP) announced that its Adjudication Division has stepped up efforts to recover penalties imposed during the financial year 2024-25, reporting PKR 26 million collected to date, equivalent to 30% of fines levied in that period. Outstanding penalties are being pursued through periodic communications with companies and recovery actions via the Land-Revenue Department and the relevant High Courts. SECP referenced section 42B of the Securities and Exchange Commission of Pakistan Act, 1997, under which penalties can be recovered as a money decree or as arrears of land revenue, including through execution processes that allow attachment of movable and immovable property and bank accounts. The recovery process includes reminder notices to defaulters at one-month intervals, with non-responsive cases escalated for recovery proceedings through SECP’s Litigation Department. The reported recovery figure excludes PKR 334 million in penalties imposed on four unlisted companies for illegal deposit-taking, where recovery proceedings have been initiated through SECP’s Prosecution and Civil Litigation Department; the total amount of penalties imposed was stated at PKR 425 million.