Prevention of fraudulent filing of statutory returns: SECP to introduce major changes in companies’ regulations

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has decided to introduce major changes in companies’ regulations to prevent fraudulent filing of statutory returns, ensure return authenticity and reduce management disputes.

In this regard, the SECP has issued draft amendments to Regulation 50 of the Companies Regulations, 2024, for public comment here on Friday.

The proposed amendment aims to prevent misleading or fraudulent filing of statutory returns, report changes in management and directorships and ensure authenticity of filed returns. The SECP has recently launched a new corporate registry, namely ‘eZfile, a user-friendly online portal for company filing.

As per proposed amendments, it would be mandatory to file processes for change of management and directors online through eZfile in order to ensure digitization and authenticity of change of management reports reported by the company. Henceforth, no physical return for a change of management would be allowed to be filed by the companies with the Commission.

The proposed amendments outline a comprehensive procedure for reporting and verifying changes in company management, including appointment, election, resignation, retirement, and removal of directors and CEOs.

Copyright Business Recorder, 2024