SECP imposes Rs4.73bn penalties during Feb-Jun for corporate violations

The Securities and Exchange Commission of Pakistan (SECP) imposed over Rs4.73 billion in penalties across 531 adjudication proceedings between February and June 2026, a statement said on Wednesday.

According to the SECP, it has stepped up its enforcement drive to strengthen compliance with corporate governance and regulatory requirements across listed and unlisted companies, financial institutions, and the insurance sector, reinforcing market integrity and protecting investors.

As per the details, in the realm of listed companies, a total of 99 proceedings were concluded for various violations of the Companies Act, 2017 (the Act), and the relevant regulatory framework, resulting in the imposition of penalties exceeding Rs9.10 million.

Common violations included failure to hold statutory meetings on time, non-compliance with statutory disclosure and reporting requirements, breaches of corporate governance provisions, and non-compliance with financial reporting obligations.

Violations also included failure to ensure the required composition of Boards of Directors, including the appointment of independent and female directors.

“These requirements are essential to protecting shareholders’ rights, particularly those of minority shareholders.”

Under the capital markets regulatory framework, the SECP concluded 69 proceedings involving violations of the Securities Act, 2015, and the Anti-Money Laundering Act, 2010.

“These proceedings resulted in regulatory directions for rectification and penalties exceeding Rs1.61 million. The violations included non-compliance with takeover regulations, beneficial ownership disclosure requirements, and corporate governance provisions.”

Similarly, effective enforcement action was taken against Non-Banking Finance Companies (NBFCs) through the conclusion of 53 proceedings, resulting in the imposition of penalties exceeding Rs1.47 million. The proceedings related to violations of the applicable regulatory framework, including deficiencies in customer verification, compliance with targeted financial sanctions and other requirements under the Anti-Money Laundering Act, 2010, as well as other applicable regulatory requirements.

In the insurance sector, 25 proceedings were concluded through adjudication orders, resulting in penalties exceeding Rs2.11 million. The violations mainly related to non-compliance with requirements for the timely settlement of policyholders’ claims, insurers’ solvency requirements, reinsurance arrangements, the Anti-Money Laundering Act, 2010, and other applicable regulatory requirements.

Against private and unlisted companies, 285 adjudication proceedings were concluded during the reporting period, resulting in the imposition of penalties amounting to Rs4.7 billion.

“These included penalty orders against three companies and their directors for engaging in illegal deposit-taking activities in contravention of Section 84 of the Companies Act, 2017. Additionally, the Commission placed special emphasis on enforcing compliance by State-Owned Enterprises (SOEs) with the provisions of the Companies Act, 2017.

“In this regard, 117 adjudication orders were passed against SOEs, of which 87 resulted in the imposition of penalties, while 30 companies were issued warnings after rectifying the identified non-compliances during the adjudication proceedings,” the SECP said.

“Compliance with the law is not optional. Our enforcement actions send a clear message that violations will not be tolerated. We will continue to uphold the highest standards of corporate governance, protect investors, and ensure transparent, fair, and accountable markets.” SECP chairman Dr Kabir Ahmed Sidhu was quoted as saying in the statement.