SECP takes action against noncompliant listed firms

Cracks down on leading names in the KSE for violating laws.

ISLAMABAD: In May, the Securities and Exchange Commission of Pakistan (SECP), continuing on its mandate, issued 20 orders, six show cause notices and six warning letters to companies and individuals for contravening various securities and corporate laws.

According to a press release, SECP’s Securities Market Division issued three orders against listed companies in violation of regulations of the Karachi Stock Exchange (KSE). An order was passed against Sui Northern Gas Pipelines for nondisclosure of material information regarding financial results and slapped a penalty of Rs1 million on the company.

Another order was passed against National Refinery Company Limited for reporting incorrect financial results to the KSE, and the SECP imposed a Rs500,000 penalty. Ecopack Limited was also fined Rs25,000 for late dissemination of semi-annual results.

The SECP’s Securities Market Division has been practicing vigilant supervision and stringent oversight of the securities market. In this regard, the SMD issued 20 orders, 6 show cause notices and 6 warning letters to various companies and individuals for contravening various securities and corporate laws in May.

Cracking down on individuals, the SECP passed 14 orders against directors/beneficial owners of listed companies for filing the returns of beneficial ownership late. The statement went on to say that in this regard, orders were issued against two directors/beneficial owners of KASB Bank, four beneficial owners of Asia Insurance Company, two beneficial owners of Fateh Industries, three beneficial owners of Fateh Sports Wear, two beneficial owners of TPL Trakker and one beneficial owner of TPL Direct Insurance.

Furthermore, an order was issued against Avais Hyder Liaquat Nauman Chartered Accountants for miscalculation of net capital balance of a brokerage house. Orders were issued against Intermarket Securities Limited, Member of KSE and Muhammad Hashim, Member of the Pakistan Mercantile Exchange for submitting of wrong information to the commission.

During the month, five show cause notice were issued to KSE brokers and their auditors for violating the Securities and Exchange Ordinance, 1969.

Moreover, a show cause notice has also been served to a listed company for violating listing regulations.

During the month, three warning letters were issued to the chairman of Murree Brewery Company, Honda Atlas Cars Pakistan and Murree Brewery Company for not abiding by the listing regulations.

Published in The Express Tribune, June 7^th, 2013.

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