Islamabad, July 8, 2025 — The Securities and Exchange Commission of Pakistan (SECP) has announced that it imposed a total of Rs425 million in penalties on various corporate entities during the fiscal year 2024-25, reflecting its firm stance on regulatory enforcement and corporate accountability.
According to an official statement, the SECP successfully concluded 1,761 adjudication proceedings over the course of the fiscal year. The penalties were levied against companies across multiple sectors for violations ranging from weak corporate governance practices to breaches in financial reporting and non-compliance with legal frameworks. This comprehensive enforcement drive demonstrates the SECP’s continued commitment to maintaining transparency and integrity in Pakistan’s evolving corporate landscape.
Out of the total proceedings, 267 publicly listed companies were brought under scrutiny. The most common violations included unauthorized investments in associated undertakings, poor corporate governance structures, and discrepancies in mandatory financial disclosures. These cases underline the importance of robust internal controls and compliance mechanisms for all listed entities operating within the regulatory framework.
The SECP also took decisive action against 49 Non-Banking Finance Companies (NBFCs) for a range of regulatory infractions. Furthermore, 43 companies were penalized for violations of Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) regulations, underscoring SECP’s alignment with international compliance standards.
In the brokerage sector, 27 cases were resolved involving violations of takeover laws. SECP issued both financial penalties and regulatory directives to rectify these offenses. The insurance sector also came under review, with 14 enforcement actions taken against insurers for non-compliance with reinsurance agreements, solvency standards, and collateral arrangements.
Extending its enforcement net to unlisted companies, SECP issued 679 penalty orders for breaches of mandatory statutory requirements, reinforcing the principle that compliance is essential across all tiers of the corporate ecosystem. However, demonstrating a balanced approach, SECP also closed 682 cases where companies rectified their defaults without the need for monetary penalties.
The SECP emphasized that its enforcement activities are aimed at protecting public interest, safeguarding minority shareholders, and ensuring the security of investors, creditors, and policyholders. As Pakistan’s financial and corporate environment continues to evolve, SECP is committed to strengthening its oversight and regulatory framework to ensure a fair, transparent, and secure marketplace.