SECP concludes 1,761 adjudication proceedings in FY2024-25

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has concluded 1,761 adjudication proceedings in the financial year 2024-25. According to the data released by the SECP on Monday, aggregate penalties of Rs 425 million were imposed, reflecting SECP's dedication to upholding the integrity and transparency of Pakistan's financial markets and corporate sector.

The adjudicated cases included 267 publicly listed companies, with major non-compliances involving unauthorized investments in associated companies, weak corporate governance, and financial reporting lapses. Enforcement actions were also taken against 49 Non-Banking Finance Companies (NBFCs). Additionally, the SECP addressed 43 companies for non-compliance with the AML/CFT Regulatory Framework, imposing judicial penalties.

In the brokerage sector, the SECP resolved 27 cases related to violations of takeover laws, issuing regulatory directives for rectification alongside penalties. The insurance sector saw 14 concluded proceedings, with penalties imposed on insurers for failing to meet reinsurance arrangements, solvency thresholds, and collateral requirements for insurance guarantees.

Extending its enforcement efforts to the unlisted segment, the SECP issued 679 penalty orders for breaches of mandatory statutory requirements. In line with its goal of promoting compliance, the SECP also closed 682 cases where defaults were rectified, without monetary penalties.

The SECP continues to safeguard the interests of the public, minority shareholders, unitholders, policyholders, and creditors through effective enforcement of its laws. As the financial landscape evolves, the SECP will further refine its regulatory strategies to ensure a fair and secure marketplace for all stakeholders, the SECP added.

Copyright Business Recorder, 2025