SECP to take action

SECP is warning action against those who fail to file tax returns with the regulator by the end of October.

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has warned that it will take action against listed companies and their beneficiaries holding more than 10 per cent of outstanding shares, who fail to file tax returns with the regulator by the end of October.

“The SECP has provided a final opportunity to all listed companies, their directors and shareholders with more than 10 per cent holding in any listed enterprise, to file their overdue annual returns on Form-A and returns of beneficial ownership respectively with the Securities Market Division at the SECP head office by October 31,” stated an official release issued here on Thursday.

“Filing of the aforementioned returns with the Securities Market Division does not absolve the listed companies and beneficial owners of their responsibility to file the same returns with the Company Registration Office, as specified in Sections 156 and 222 of the ordinance,” it clarified.

SECP Director Securities Market Division Imran Butt told The Express Tribune that “under Sections 246 and 222 of the Companies Ordinance, all listed companies, their directors and shareholders having more than 10 per cent holding are required to file their annual returns on Form-A, and returns of beneficial ownership on Forms 31/32 respectively, with the SECP head office.”

“The regulator can take action against companies and individuals that fail to meet this requirement,” added Butt. He explained that “show-cause notices would be issued to non-compliant parties which may be followed by fines and penalties as defined by law.”

The release cited that despite a warning issued on July 9 by the SECP “some of the listed companies and beneficial owners are not filing their returns.”

Published in The Express Tribune, October 1^st, 2010.