To strengthen accountability and governance in state institutions, the Securities and Exchange Commission of Pakistan (SECP) today took decisive action against companies that have failed to fulfill their statutory financial reporting obligations. This initiative aligns with the government’s broader reform policy aimed at fostering a culture of corporate responsibility in public institutions.
The SECP has completed actions on 58 out of 66 show-cause notices issued in March 2026 to 41 state institutions for not submitting annual returns and financial statements. These actions resulted in fines on 46 notices, while warning orders were issued on the remaining 12. A total of 3.175 million rupees in fines were imposed, reflecting SECP’s serious stance on matters of non-compliance.
Companies that did not submit their annual returns were fined a minimum of 25,000 rupees, while those failing to submit both returns and financial statements were fined 50,000 rupees. The most severe penalty was 225,000 rupees, targeting entities that persistently ignored compliance requirements.
Despite stringent measures, the SECP assured that companies were given ample opportunity to present their cases during the show-cause proceedings. This procedure encouraged several state companies to submit delayed returns after receiving the notices.
To further assist these institutions in fulfilling regulatory obligations, the SECP has established a special facilitation desk to guide the return filing process. Additionally, copies of the decisions from show-cause proceedings have been shared with relevant principal accounting officers and the Central Monitoring Unit to strengthen oversight and accountability.
SECP’s ongoing efforts to enforce compliance with the Companies Act and corporate governance regulations demonstrate a commitment to enhancing transparency and integrity in the nation’s state institutions.