SECP Intensifies Enforcement Drive Across Corporate Sector
The Securities and Exchange Commission of Pakistan (SECP) has imposed more than Rs4.73 billion in penalties across 531 adjudication proceedings between February and June 2026, marking a significant escalation in regulatory enforcement following the appointment of new Commissioners in February.
The regulator said the enforcement campaign aims to strengthen compliance with corporate governance standards and regulatory requirements across listed and unlisted companies, financial institutions and the insurance sector, while reinforcing market integrity and protecting investors.
Listed Companies Face Corporate Governance Penalties
The SECP concluded 99 proceedings involving listed companies for violations of the Companies Act, 2017, and related regulations, imposing penalties exceeding Rs9.10 million.
Common violations included failure to hold statutory meetings on time, non-compliance with disclosure and reporting requirements, breaches of corporate governance provisions and failures to meet financial reporting obligations.
The regulator also cited non-compliance with board composition requirements, including the appointment of independent and female directors, which it said are essential for protecting shareholder rights, particularly those of minority investors.
Capital Markets And NBFCs Also Under Scrutiny
Under the capital markets regulatory framework, the SECP concluded 69 proceedings involving violations of the Securities Act, 2015, and the Anti-Money Laundering Act, 2010.
The cases resulted in regulatory directions for corrective action and penalties exceeding Rs1.61 million. Violations included non-compliance with takeover regulations, beneficial ownership disclosure requirements and corporate governance rules.
The SECP also concluded 53 proceedings against Non-Banking Finance Companies (NBFCs), imposing penalties of more than Rs1.47 million.
The violations included deficiencies in customer verification, compliance with targeted financial sanctions, Anti-Money Laundering requirements and other regulatory obligations.
Insurance Sector Penalised For Compliance Failures
The regulator concluded 25 adjudication proceedings in the insurance sector, resulting in penalties exceeding Rs2.11 million.
The cases mainly involved delays in settling policyholders’ claims, breaches of solvency requirements, shortcomings in reinsurance arrangements, violations of the Anti-Money Laundering Act, 2010, and other regulatory requirements.
Private Companies Receive Majority Of Penalties
The largest share of enforcement action targeted private and unlisted companies.
The SECP concluded 285 adjudication proceedings, imposing penalties amounting to approximately Rs4.7 billion.
Among these were penalty orders against three companies and their directors for engaging in illegal deposit-taking activities in violation of Section 84 of the Companies Act, 2017.
The Commission also focused on improving compliance among State-Owned Enterprises (SOEs).
A total of 117 adjudication orders were issued against SOEs, with 87 entities receiving financial penalties, while 30 companies were issued warnings after rectifying identified non-compliances during the proceedings.
SECP Reaffirms Zero-Tolerance Approach
SECP Chairman Dr. Kabir Ahmed Sidhu said compliance with the law is mandatory and that the regulator’s enforcement actions send a clear message that violations will not be tolerated.
He added that the Commission will continue to uphold high standards of corporate governance, protect investors and ensure transparent, fair and accountable markets.