SECP looks to scrap requirement for shareholders of Pakistani firms to declare foreign shareholdings

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has strongly proposed withdrawal of requirement for shareholders and officers of Pakistani companies to declare their foreign shareholdings under the Companies Act 2017.

The SECP has proposed abolition of section 452 of the Companies Act.

According to the rationale given by the SECP, the requirement for shareholders and officers of Pakistani companies to declare their foreign shareholdings under this section resulted in duplication of reporting obligations already enforced by the Federal Board of Revenue (FBR) and other relevant authorities under tax and anti–money laundering frameworks.

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Since uncoordinated dual reporting created unnecessary administrative burden and compliance overlap, the provision has been omitted to streamline regulatory processes, eliminate redundancy, and ensure that disclosure of foreign assets and ownership interests remains governed under the relevant tax and financial reporting laws, the SECP added.

Copyright Business Recorder, 2026