SECP enforces UBO disclosure to strengthen transparency

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has directed all companies to ensure timely submission of Ultimate Beneficial Ownership (UBO) information through Form-19 on its eZfile portal.

Section 123A of the Companies Act, 2017, requires all companies to file Form-19 declaring Ultimate Beneficial Ownership along with their annual return.

Disclosure of UBO information is essential to ensure corporate transparency, prevent misuse of corporate structures, and strengthen Pakistan’s framework for combating money laundering and illicit financial flows.

UBO refers to the natural person(s) who ultimately own or control a company, whether directly or indirectly. This includes individuals who exercise significant influence or control over the company, even if they are not formally listed as shareholders or directors.

The SECP has observed that a number of companies have yet to comply with this mandatory requirement and has advised them to complete the filing without delay.

Companies can file Form-19 through the SECP’s eZfile portal by logging into their company account, selecting the relevant filing option, and providing details of ultimate beneficial owners. The form requires accurate disclosure of ownership structure, shareholding or control percentages, and particulars of beneficial owners.

Companies are also required to maintain an internal register of beneficial owners and ensure that such information is updated annually or whenever changes occur.

Non-submission of Form-19 is a violation of Section 123A of the Act and may result in penalties of up to Rs. 1 million on directors, officers, or other responsible persons, and up to Rs. 10 million on the company.

The SECP has urged all companies to ensure compliance within the stipulated timeline and warned that legal proceedings will be initiated against those failing to file Form-19 by April 30, 2026.

Copyright Business Recorder, 2026