SECP cracks down on compliance breaches

ISLAMABAD: The Securities and Exchange Commission of Pakistan has intensified its enforcement drive, imposing over Rs. 4.73 billion in penalties across 531 adjudication proceedings between February and June 2026.

Since new Commissioners took charge in February, the SECP has focused on strengthening compliance and corporate governance for listed and unlisted companies, financial institutions and insurers to protect investors and market integrity.

For listed companies, 99 proceedings concluded with penalties exceeding Rs. 9.10 million for violations including delayed statutory meetings, poor disclosure, weak financial reporting, and failure to meet board composition rules for independent and female directors.

In capital markets, 69 proceedings led to penalties of over Rs. 1.61 million for breaches of the Securities Act, 2015 and Anti-Money Laundering Act, 2010. NBFCs faced 53 proceedings with Rs. 1.47 million in fines, while 25 insurance sector cases resulted in Rs. 2.11 million penalties for claim delays and solvency issues.

Most penalties, Rs. 4.7 billion, were against 285 private and unlisted firms, including three for illegal deposit-taking. SECP also issued 117 orders to SOEs.

Chairman Dr. Kabir Ahmed Sidhu said compliance is not optional and violations will not be tolerated.