The Securities and Exchange Commission of Pakistan (SECP) has successfully recovered Rs26 million in penalties during the financial year 2024–25, marking a significant milestone in its ongoing drive to strengthen regulatory enforcement and improve compliance within the corporate sector. This recovery constitutes nearly 30 percent of the total penalties imposed during the stated period.
According to a press release issued by SECP, the enforcement division has been actively pursuing outstanding penalties through a multi-pronged approach involving regular follow-up communication with defaulting companies, legal recovery mechanisms via the Land Revenue Department, and litigation proceedings in the High Courts. These efforts reflect the regulator’s commitment to maintaining financial discipline across the country’s corporate and financial sectors.
Notably, the Rs26 million recovery is exclusive of Rs334 million in penalties that were imposed on four unlisted companies involved in illegal deposit-taking schemes. Recovery proceedings in these high-value cases have already been initiated by SECP’s Prosecution and Civil Litigation Department. The total amount of penalties imposed by SECP during the fiscal year now stands at Rs425 million.
SECP’s authority to recover such penalties stems from Section 42B of the SECP Act, 1997. This provision empowers the regulator to treat penalty orders as decrees for the recovery of money. Under this framework, the High Courts are authorized to act as executing courts under the Code of Civil Procedure, 1908. These courts may order the attachment of moveable or immoveable assets—including corporate bank accounts—of companies found in violation of the regulatory framework. Additionally, SECP is entitled to recover penalties as arrears of land revenue where applicable.
To ensure fair process, SECP maintains a structured penalty recovery regime. Defaulter companies are issued formal reminders at regular one-month intervals, giving them reasonable time to comply with the orders and settle the imposed penalties voluntarily. Only in cases where companies fail to respond or refuse to make payments does the SECP escalate the matter through its Litigation Department.
The Commission emphasized that the intent behind these rigorous enforcement actions is not punitive but corrective—aimed at cultivating a culture of transparency, accountability, and legal compliance in Pakistan’s business environment. The regulator reiterated its mission to safeguard investor interests and minimize systemic risks by ensuring adherence to financial and corporate governance laws.
This intensified approach from SECP reflects a broader strategy to clamp down on financial misconduct and protect the integrity of Pakistan’s regulatory landscape. By demonstrating its readiness to enforce compliance through legal channels, SECP is signaling to market participants that regulatory oversight will not be compromised, and violators will be held accountable.
In the evolving landscape of financial regulation, this development reinforces SECP’s role as a key institutional pillar for promoting good governance and legal adherence across Pakistan’s financial and corporate sectors.