SECP to Penalize Companies for Late Filing of Auditor’s Reports

The Securities and Exchange Commission of Pakistan (SECP) has empowered its adjudication division to impose penalties on companies for default or late filing of cost auditor’s reports.

In this regard, the SECP issued S.R.O. 1437(I)/2021 on Friday.

Under the notification, the commission has delegated its specified powers and functions to the director and adjudication officers of adjudication department-II of the adjudication division concerning companies other than the listed companies.

The adjudication officers of adjudication department-II posted in Islamabad, Lahore, and Karachi have been authorized to impose a penalty on contravention of regulation 6(3) of the regulations i.e. default concerning the filing of cost auditor’s report of companies.

The powers in respect of companies that have registered offices in the province of Khyber Pakhtunkhwa, Gilgit-Baltistan, and Islamabad Capital Territory including civil division Rawalpindi, shall be exercised by the adjudication officer, adjudication department–II, Islamabad. The powers in respect of companies having registered offices in the province of Sindh and Balochistan shall be exercised by the adjudication officer, adjudication department–II, Karachi.

The powers in respect of companies having registered offices in the province of Punjab, except the Rawalpindi division, shall be exercised by the adjudication officer, adjudication department–II, Lahore.

In case the post of director of the adjudication department–II is vacant or the incumbent is unable to perform his duties, the powers and functions delegated to him through this notification shall be exercised by the wing head, adjudication department–II.

The powers delegated as above shall be exercised concurrently by the wing head, adjudication department–II, if circumstances so warrant.

SECP shall have the authority to exercise all powers delegated above concurrently.

The commission said that the notification shall not affect anything done, the order made, notification issued, show cause issued, circular made, proceedings commenced, penalties imposed and/or collected, sanction granted, approval made, fee directed or collected, directions given, investigation, inspection or inquiry conducted or any other action taken or done under or in under any previous notifications under the repealed Companies Ordinance, 1984 and shall be considered valid and under lawful authority.