The Securities and Exchange Commission of Pakistan (SECP) has found investment by only one private company in offshore company revealed in Panama Leaks. Sources told Business Recorder here on Tuesday that the private companies are not required to obtain shareholders' approval and such investments fall under the authority of directors of the company as per Companies Ordinance 1984. Since the matter pertained to a private company, therefore complete information was shared with Federal Board of Revenue (FBR) and State Bank of Pakistan (SBP) for further scrutiny of matter in respect of compliance with the law administered by the respective regulator.
To a query whether no direct investment has been made by the companies registered in Pakistan in the offshore companies listed in Panama Papers, sources said that investment by one private company was found in offshore company mentioned in Panama Leaks.
Sources said that out of 600 companies (registered in Pakistan in which Pakistanis named in Panama Papers are directors) a total of 38 companies were found having foreign investments/borrowings other than as reported by Panama papers. These 38 companies included 16 listed companies, 8 public unlisted companies and 14 private companies.
When asked about scrutiny of the offshore companies with regard to foreign portfolio investment in the companies listed on Pakistan Stock Exchange Limited, the sources said that the issue is in relation with investments made in Pakistani companies by foreign entities. In one instance, a foreign offshore company named in Panama Leaks had made an investment in two Pakistani companies.
When asked whether the SECP proceeded against companies/ directors whose interests in offshore companies have been made public by the Panama Leaks with violations of Companies Ordinance/rules/regulations, sources said there was no direct investment made in offshore companies by the companies registered in Pakistan relating to identified individuals as per the financial statements available at SECP. The available record reflects, prima facie, the investments, as mentioned in the Panama papers, were made by the persons in their individual capacity and same has not been routed through any company's accounts. Also, investment by one private company was found in offshore company revealed in Panama Leaks. Moreover, a total of 600 Pakistani companies were found in which 155 Pakistanis named in panama papers were directors. No action is called for on the part of the SECP and matter falls within the domain of FBR, they added.
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