SECP Advises Companies to Keep Websites Updated for Investor Confidence

The Securities and Exchange Commission of Pakistan (SECP) Monday conveyed to the companies that the mandatory updated website is a valuable tool for existing and potential investors for making well-informed decisions in Pakistan.

According to an order issued by the SECP in the matter of Show Cause Notice issued to Tri-Star Power Limited, the SECP stated that the mandatory updated website is aimed at serving as a valuable tool for existing and potential investors for making well-informed decisions, as well as being mutually beneficial for companies giving them an effective platform to provide all significant and material information to the stakeholders and seek their feedback wherever required.

The Commission believes that this is a progressive step towards aligning the participants of capital markets with global technological progress and international best practices. Needless to say that an optimized, functional, interactive website is instrumental to a Company’s success helping it establish credibility as a business, SECP order said.

Website maintenance is essential as it warrants its performance at peak by removing errors, and security issues and delivering the best user experience to customers and clients alike, SECP maintained.

The SECP has gone through the facts of the case, relevant regulatory provisions, and the Company’s written responses and observed that ample time was provided to the Respondents for complying with the requirements of the rules for placement and maintenance of necessary information on the Company’s website.

The Company failed to comply with the Commission’s Order and was liable for penal action under Section 499 of the Act. The SECP has imposed a cumulative fine of Rs. 175,000/- on the company, SECP added.