ISLAMABAD: The Enforcement Department of the Securities and Exchange Commission of Pakistan (SECP) has initiated 448 show cause proceedings related to various matters, including violation of takeover laws and non- compliance with legal obligations against companies.
According to a statement of the SECP issued here on Thursday, in the recent surge in regulatory alarms and stronger push to pursue individuals for wrongdoings is the result of the implementation of SECP's vision of enforcing corporate securities' laws, accountability of holding companies and their auditors, and creating a compliant corporate culture.
Through enforcement actions the SECP has reassured the investors that as an independent and robust regulator, it will provide a level-playing field to investors, and perpetrators will be taken to task.
The enforcement actions covered the full spectrum of the 1984, Companies Ordinance and other statutes.
Moreover, the Enforcement Department scrutinized various applications of companies, and accorded approvals and relaxation from certain provisions of laws and rules in cases where the requisite conditions had been met.
In the above context, during the year 2013-14, the Enforcement Department of the SECP initiated 448 show cause proceedings related to various matters, including violation of takeover laws and non-compliance with legal obligations regarding auditors' report, directors' power, holding annual general meetings, appointment or removal of directors, violations identified in issue of capital, investment in associated companies, misstatement of facts, disclosure of directors' interest, treatment of surplus on revaluation of fixed assets, circulation of financial statements, employees' provident funds and security deposits.
The department concluded about 480 proceedings against the companies, and chief executives, directors and auditors of the companies.
In addition, while facilitating the companies to strengthen their capital base and to achieve economies of scale of their business, the department allowed 23 listed companies to issue shares at a discount and by way of otherwise than right.
Further, the department accorded 252 approvals and relaxation from certain provisions of laws and the rules.
These approvals pertain to appointment of cost auditors under the 1998 Companies (Audit of Cost Accounts) Rules, filing of consolidated financial statements, extension in holding of annual general meeting, printing of computerized national identity card (CNIC) number on dividend warrants, transmission of quarterly accounts through website, and rectification of register of mortgage.
Moreover, 282 investor complaints pertaining to non-issuance of shares, non-verification of transfer deeds and non-payment of dividends were resolved.
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