The Securities and Exchange Commission of Pakistan (SECP) has announced the closure of Companies Registration Offices (CROs) and facilitation centers until further notice as a preventive measure against the spread of coronavirus disease (COVID-19).
The decision, detailed in circular No. 13/2020 issued on Tuesday, reflects the evolving pandemic situation in Pakistan and the significant threat it poses to the workforce involved in public dealings.
The SECP highlighted that the current outbreak, affecting a substantial number of countries, necessitated immediate action to protect the well-being of employees stationed at CROs and facilitation centers. To this end, the SECP has implemented various preventive measures, chief among them being the closure of these facilities in accordance with local authorities’ advice.
The circular specified that all public dealings at CROs and facilitation centers would be halted until further instructions. This includes the suspension of the inspection of documents and records of companies as mandated by regulation 19 of the Company (Registration Offices) Regulations, 2018. However, the SECP has made provisions for online inspections, which may be permitted by the respective CROs Incharges on a case-by-case basis, especially in situations deemed critical.
Recognizing the difficulties companies face in responding to queries and letters from CROs during this period, the SECP has extended the response time limit to 30 days. This extension aims to provide companies with the necessary flexibility to manage their affairs without compromising compliance due to the disruptions caused by the pandemic.
The SECP’s proactive stance underscores its commitment to safeguarding the health and safety of its employees while maintaining regulatory oversight and support for businesses during these challenging times. By prioritizing employee welfare and adjusting regulatory requirements, the SECP aims to mitigate the impact of COVID-19 on the corporate sector and ensure continuity in its operations through alternative, digital means.
As the situation evolves, the SECP remains vigilant and prepared to adapt its measures in line with public health advisories and the needs of the business community. The regulator’s actions reflect a balanced approach to crisis management, combining strict preventive measures with operational flexibility to support stakeholders effectively.