SECP takes punitive measures against companies' high-ups

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued show-cause notices to the directors and auditors of twenty-six companies for failing to comply with corporate laws and accounting standards.

According to a statement of the Commission issued here on Monday, these notices were issued by the enforcement department of the SECP in January 2013.

The enforcement department also initiated proceedings against twenty-three companies on complaints received from shareholders.

The complaints were pertaining mainly to jeopardizing the shareholders' right of receiving the dividend warrants, right/bonus shares and non-transfer of right shares.

The SECP, as part of its mandate monitors listed and non- listed companies to safeguard investor interest and takes appropriate punitive action.

These enforcement actions were taken in view of the breaches of statutory requirements noticed during the inspection of audited accounts of listed and non-listed companies.

In January, the enforcement department concluded twenty proceedings against directors and auditors of companies by imposing penalties and issuing the warning letters.

On account of recommendations made by the enforcement department, the SECP also initiated an investigation into the affairs of a listed company.

Moreover, the SECP also granted extension for organizing the Annual General Meetings (AGM) to two companies and also allowed a company to change the place of its AGM, while, four companies were directed to hold overdue AGM in due course of time.

Furthermore, three companies were allowed to place their quarterly accounts on their website while nine companies were allowed to change their websites addresses.