The Securities and Exchange Commission of Pakistan (SECP) has reaffirmed its commitment to promoting a proactive compliance culture by concluding 1,761 adjudication proceedings during the financial year 2024-25. These efforts resulted in aggregate penalties of Rs 425 million, underscoring SECP’s dedication to maintaining transparency and integrity within Pakistan’s financial markets and corporate sector.
The concluded cases involved 267 publicly listed companies, with key violations including unauthorized investments in associated companies, weak corporate governance practices, and shortcomings in financial reporting. Enforcement actions were also taken against 49 Non-Banking Finance Companies (NBFCs). Additionally, SECP addressed 43 companies for failing to comply with the AML/CFT Regulatory Framework, imposing judicial penalties where necessary.
In the brokerage sector, SECP finalized 27 cases related to breaches of takeover laws, issuing regulatory directives for corrective measures along with financial penalties. The insurance sector saw 14 cases concluded, with penalties imposed on insurers for non-compliance with reinsurance arrangements, solvency margins, and collateral requirements tied to insurance guarantees.
Expanding its enforcement reach to the unlisted segment, SECP issued 679 penalty orders for violations of mandatory statutory obligations. To encourage a culture of compliance, SECP also closed 682 cases without monetary penalties after the concerned parties rectified their defaults.
SECP remains dedicated to protecting the interests of the public, minority shareholders, unitholders, policyholders, and creditors through robust enforcement of its regulatory framework. As Pakistan’s financial landscape continues to evolve, SECP plans to further strengthen its oversight strategies to ensure a fair, transparent, and secure marketplace for all stakeholders.