The Securities and Exchange Commission of Pakistan (SECP) has concluded enforcement proceedings against dozens of state-owned enterprises (SOEs), imposing financial penalties worth Rs3.175 million for violations of statutory reporting and corporate governance requirements.
The regulator issued 46 adjudication orders against 36 SOEs and warning orders in 12 separate cases as part of its efforts to strengthen transparency and accountability in the public sector.
66 Show Cause Notices Issued
In March 2026, the SECP served 66 show cause notices to 41 state-owned enterprises over various compliance failures.
The violations included delays in submitting annual audited financial statements, failure to file annual returns within prescribed deadlines, non-compliance with disclosure requirements, and breaches of corporate governance regulations.
The commission has so far concluded proceedings in 58 cases.
Penalties Range from Rs25,000 to Rs225,000
According to the SECP, penalties varied depending on the nature and severity of violations.
The minimum penalty of Rs25,000 was imposed for failing to submit annual returns. Companies that failed to file both annual returns and financial statements faced penalties of Rs50,000.
The highest penalty of Rs225,000 was imposed on entities with repeated violations of statutory filing requirements.
Overall, the regulator imposed penalties totaling Rs3.175 million.
Several SOEs Regularize Compliance
The SECP said several state-owned enterprises submitted their outstanding annual returns after receiving show cause notices.
To improve compliance, the commission established a dedicated help desk to assist SOEs with annual returns and other statutory filings.
Officials stated that the proceedings followed due process, with all companies given sufficient opportunities to respond to notices and present their positions during hearings.
Government Pushes for Greater Transparency
The enforcement action comes as part of the government’s broader reform agenda aimed at improving governance standards in the state-owned sector.
The SECP has increased its oversight of SOEs and is taking steps to ensure compliance with the Companies Act and corporate governance framework.
The regulator has also shared copies of the adjudication orders with the relevant Principal Accounting Officers and the Director General of the Central Monitoring Unit for further action and monitoring.
SECP Warns of Further Action
The commission has urged all state-owned enterprises to strengthen their internal compliance systems and ensure timely fulfilment of statutory obligations.
The regulator warned that companies failing to improve governance practices and regulatory compliance could face further enforcement action in the future.