Regulator examines export proceeds, foreign remittances and shareholder transactions amid concerns over the company’s financial disclosures and audit.

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has sought export records from seven banks as its investigation into the proposed initial public offering (IPO) of SE Fruits and Vegetable Limited progresses.

According to an SECP news release, the regulator also approached 30 banks seeking details of foreign remittances, export proceeds and other foreign exchange transactions received in accounts belonging to the company’s sponsors and directors. Some banks have submitted their responses, which are currently under review.

The SECP initiated the investigation on October 21 under Section 29 of the SECP Act, 1997, read with Section 139 of the Securities Act.

The regulator has received information from the IPO’s joint lead managers, Topline Securities and Growth Securities. The response from consultant Parker Russell–A.J.S. is also being examined.

The investigation team is reviewing the IPO application and shareholder information. The Central Depository Company (CDC) provided an investor list and subsequently received a request for shareholder records and transfer histories of individuals named in the prospectus. Its partial response, received on November 2, remains under review.

Meanwhile, the company’s auditor, Ilyas Saeed & Co., requested additional time to submit the required information and records. The SECP granted the extension.

The investigation follows concerns over the company’s financial disclosures and audit. SE Fruits, formerly known as Shaheen Enterprises, planned to raise up to Rs1.92 billion through an offering of 30 million shares at Rs40 each.

However, the SECP halted the IPO in October, following which the company withdrew the offering.