ISLAMABAD: In an effort to strengthen the supervis
ion of listed companies, the S
ecurities and Exchange Commiss
ion of Pakistan (SECP) has decided to make the onsite inspection a more regular and frequent feature in addition to offsite supervision and adjudicat
ion of listed companies.
A specialized inspect
ion 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 companies especially non-operational companies and the companies under process of reviving their operations.
Moreover, cohesive risk profiling exercise of listed companies has been strengthened in order to streamline supervis
ion of companies based on indicators such as return to shareholders, financial results, compliance history, presence on defaulters’ counter and transact
ion with related parties.
The department has initiated 94 show cause proceedings against companies related to various non-compliance with legal requirements regarding auditors’ reports, directors’ powers, holding of annual general meetings, investment in associated companies, circulat
ion of financial statements, tr
eatment of surplus on revaluat
ion of fixed assets and s
ecurity 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 Companies (Principles) in Karachi, Lahore and Islamabad in co-operat
ion with the International Finance Corporation (IFC) and Centre for International Private Enterprise (CIPE).
The first sess
ion will be held next month in Karachi. The aim of awareness sessions is to promote corporate governance culture in the family owned companies and public companies in Pakistan. The department continued to facilitate investors and resolved 80 complaints pertaining to non-issuance of shares, non-verificat
ion of transfer deeds and non-payment of the dividends.
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