SECP Concludes Over 1,700 Adjudication Proceedings in FY25

The Securities and Exchange Commission of Pakistan (SECP) finalized 1,761 adjudication cases during the fiscal year 2024-25. Official figures released by the SECP on Monday revealed that total penalties amounting to Rs 425 million were levied. This underscores the SECP’s commitment to maintaining the integrity and promoting the transparency of Pakistan’s financial markets and corporate sphere.

Details of Adjudicated Cases

The resolved cases encompassed 267 publicly traded firms. Key instances of non-compliance involved unauthorized investments in affiliated entities, deficiencies in corporate governance, and shortcomings in financial reporting. Regulatory actions were also pursued against 49 Non-Banking Finance Companies (NBFCs). Moreover, the SECP took action against 43 companies for failing to adhere to the AML/CFT Regulatory Framework, resulting in judicial penalties.

Brokerage and Insurance Sectors

Within the brokerage industry, the SECP addressed 27 cases pertaining to breaches of takeover regulations, issuing directives for corrective measures alongside financial penalties. The insurance industry witnessed the conclusion of 14 proceedings, with penalties imposed on insurers for not fulfilling reinsurance arrangements, solvency benchmarks, and collateral obligations for insurance guarantees.

Enforcement in Unlisted Segment

The SECP extended its enforcement activities to the unlisted sector, issuing 679 penalty orders for violations of obligatory statutory requirements. Aligning with its aim to foster compliance, the SECP also closed 682 cases without imposing monetary penalties, as the defaults had been rectified.

Commitment to Stakeholders

The SECP remains dedicated to protecting the interests of the public, minority shareholders, unitholders, policyholders, and creditors through robust enforcement of applicable laws. As the financial environment continues to evolve, the SECP aims to further develop its regulatory approaches to guarantee a just and secure marketplace for all participants, the SECP stated.