SOHAIL SARFRAZ

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has disposed of 502 cases of dissolution of companies during 2016-17 including 496 companies struck off from the register of the Commission.

According to the SECP annual report for 2016-17, the SECP has disposed of 502 cases of dissolution of companies during the period under review. Of these, six companies wound up voluntarily and 496 companies were struck off from the register under Section 439 of the Ordinance.

During 2016-17 period, 986 annual audited financial statements of listed, non-listed and private companies, and companies registered under sections 42 and 43 of the Ordinance were examined. Where required, explanations were sought to check compliance with various provisions of the Ordinance and the administered laws and proceedings were initiated in cases where violations were identified. This reflects the stringent regulatory oversight, actions and expeditious disposal of proceedings by the department, over the years.

The investigations/inspections constitute a salient aspect of the SECP’s role as the regulator of the corporate sector. During the year, four investigation proceedings were initiated against the listed companies and one against an unlisted company based on various adverse indicators, including serious qualifications by auditors, adverse financial position and performance disposal of substantial assets at loss, non-submission of mandatory information and serious non-compliances with the international financial reporting standards etc.

Additionally, 29 inspections were ordered during the year under Section 231 of the Ordinance. Out of the total inspections ordered, six have been concluded and reports have been submitted to the Commission, while 23 inspection proceedings are in process, the SECP added.