ISLAMABAD: In an effort to strengthen th
e supervision of listed companies, the Securities and Exchange Commission of Pakistan (SECP) has decided to make the onsite inspection a more regular and frequent feature in addition to offsit
e supervision and adjudication of listed companies.
A specialized inspection wing has been set up for this purpose and it has started working. The objective of inspections is more of a fact finding exercise than to penalize companies. It will scrutinize operational status, financial position and quality of assets of listed comp
anies especially non-operational comp
anies and the comp
anies under process of reviving their operations.
Moreover, cohesive risk profiling exercise of listed comp
anies has been strengthened in order to streamlin
e supervision of comp
anies based on indicators such as return to shareholders, financial results, compliance history, presence on defaulters’ counter and transaction with related parties.
The department has initiated 94 show cause proceedings against comp
anies related to various non-compliance with legal requirements regarding auditors’ reports, directors’ powers, holding of annual general meetings, investment in associated companies, circulation of financial statements, treatmen
t of surplus on revaluation of fixed assets and security deposits etc. during December and January, whereas 71 proceedings were concluded through orders during these two months.
The department has also finalized plans to hold three awareness sessions about Principles of Corporate Governance for Non Listed Comp
anies (Principles) in Karachi, Lahore and Islamabad in co-operation with the International Finance Corporation (IFC) and Centre for International Private Enterprise (CIPE).
The first session will be held next month in Karachi. The aim of awareness sessions i
s to promote corporate governance culture in the family owned comp
anies and public comp
anies in Pakistan. The department continue
d to facilitate investors and resolved 80 complaints pertaining to non-issuance of shares, non-verification of transfer deeds and non-payment of the dividends.
