Key Takeaways
- The Securities and Exchange Commission of Pakistan (SECP) imposed over Rs4.73 billion in penalties.
- Penalties were issued across 531 adjudication proceedings between February and June 2026.
- Actions targeted listed companies, capital markets, NBFCs, insurance sector, and private companies.
The Securities and Exchange Commission of Pakistan (SECP) has imposed over Rs4.73 billion in penalties across 531 adjudication proceedings between February and June 2026, according to a statement released on Wednesday.
This enforcement drive aims to strengthen compliance with corporate governance and regulatory requirements for listed and unlisted companies, financial institutions, and the insurance sector, reinforcing market integrity and protecting investors.
In the realm of listed companies, 99 proceedings were concluded for various violations of the Companies Act, 2017 (the Act), resulting in penalties exceeding Rs9.10 million. Common violations included failure to hold statutory meetings on time, non-compliance with statutory disclosure and reporting requirements, breaches of corporate governance provisions, and non-compliance with financial reporting obligations.
The SECP also took effective enforcement action against Non-Banking Finance Companies (NBFCs) through the conclusion of 53 proceedings, resulting in penalties exceeding Rs1.47 million. These violations included deficiencies in customer verification, compliance with targeted financial sanctions, and other applicable regulatory requirements under the Anti-Money Laundering Act, 2010.
In the insurance sector, 25 proceedings were concluded through adjudication orders, resulting in penalties exceeding Rs2.11 million. The violations mainly related to non-compliance with requirements for timely settlement of policyholders’ claims and insurers’ solvency requirements.
Against private and unlisted companies, 285 adjudication proceedings were concluded during the reporting period, resulting in the imposition of penalties amounting to Rs4.7 billion. These included penalty orders against three companies and their directors for engaging in illegal deposit-taking activities in contravention of Section 84 of the Companies Act, 2017.
The SECP also placed special emphasis on enforcing compliance by State-Owned Enterprises (SOEs) with the provisions of the Companies Act, 2017. In this regard, 117 adjudication orders were passed against SOEs, of which 87 resulted in the imposition of penalties, while 30 companies were issued warnings after rectifying identified non-compliances during the adjudication proceedings.
SECP chairman Dr Kabir Ahmed Sidhu stated, 'Compliance with the law is not optional. Our enforcement actions send a clear message that violations will not be tolerated. We will continue to uphold the highest standards of corporate governance, protect investors, and ensure transparent, fair, and accountable markets.'
Compliance with the law is not optional. Our enforcement actions send a clear message that violations will not be tolerated.
Dr Kabir Ahmed Sidhu, SECP Chairman
