SECP clears adjudication cases backlog

The Securities and Exchange Commission of Pakistan (SECP) disposed of 98% of its adjudication caseload, issuing decisions in 573 cases and imposing penalties exceeding Rs4.73 billion for violations of the Companies Act and other applicable laws. Following the appointment of SECP Chairman Dr Kabir Ahmed Sidhu, the commission further strengthened its adjudication functions. Of the 969 Adjudication Recommendation Notes available for assessment, 953 were reviewed, while proceedings in 573 cases were concluded through the issuance of orders, said a news release. The remaining recommendations for initiating legal proceedings were subsequently processed through strengthened oversight and effective case management, resulting in the clearance of the entire adjudication backlog. The proceedings involved listed, unlisted and private companies, as well as regulated entities including securities' brokers, insurance companies and Non-Banking Finance Companies (NBFCs). The violations related to the Companies Act, the Securities Act and other applicable laws and regulatory requirements. The commission also placed particular emphasis on compliance by state-owned enterprises and issued 117 adjudication orders concerning violations of applicable corporate and regulatory requirements by the SOEs. Major violations included failure to submit financial statements and statutory information, delays in holding annual general meetings, non-disclosure of mandatory information, breaches of financial-reporting and corporate-governance requirements, and failure to appoint female and independent directors. The SECP chairman said the commission was ensuring timely, transparent and evidence-based decisions in all adjudication matters. He said the SECP's priorities included expeditious disposal of pending proceedings through effective case management, strengthening the rule of law, promoting a culture of regulatory compliance among companies and protecting the interests of investors, particularly minority shareholders. Furthermore, the SECP on Friday approved Shaamilkar Tajir, a digital application offering Shariah-compliant financing of up to Rs3 million to eligible small businesses. Developed by the SECP-licensed Shaamilkar Financial Services, the application will enable micro-entrepreneurs to purchase inventory from approved suppliers through a simpler and faster digital process, said a news release. The initiative aims to bring underserved businesses into the formal credit system and help them expand their operations. "Technology-enabled financing can expand access to formal credit for underserved businesses," SECP Chairman Dr Kabir Ahmed Sidhu said, adding that the commission would facilitate responsible digital financing while ensuring regulatory oversight and consumer protection. The approval supports the federal government's access to finance agenda for SMEs and other priority sectors. Between July 2025 and June 2026, the licensed lending NBFCs provided Rs253 billion through 2.5 million loans to micro, small and medium enterprises. APP