The SECP’s Enforcement
Department— while enforcing compliance of corporate and allied laws— initiated
86 show-cause proceedings and concluded 54 proceedings against chief
executives, directors and auditors of companies in February and March.
While facilitating companies to
strengthen their capital base, the department allowed three listed companies to
issue shares by way of otherwise than right at a discount and at par.
In order to strengthen the existing regime of
Corporate Social Responsibility (CSR) reporting, the SECP has joined hands with
the ICAP for the external assurances of the CSR reports. CSR reports assist organizations in
understanding and communicating their vision of combining a company’s
profitability with social responsibility and environmental care. Both the SECP
and the ICAP have reaffirmed their commitment to developing a framework for
external assurance in accordance with prominent international assurance
standards, and within a mutually agreed time frame.
In March 2014, the department
organized a joint SECP-ICAP meeting. The issues regarding adoption of the IFRS
for SMEs, conversion of ICAP’s Financial Reporting Guidelines into standards
for NGOs, accounting issues relating to mutual funds, reforms
in practice management regime, and revision of the format of the auditor’s
report were discussed in detail. Joint SECP-ICAP committees were formed for
further action. Furthermore, a strategy was developed to harmonize the
corporate governance regime in Pakistan .
The department accorded approvals and relaxation from
certain provisions of laws and rules. The approvals pertained to appointment of
cost auditors under the 1998 Companies (Audit of Cost Accounts) Rules, filing
of consolidated financial statements, changing the venue of annual general
meeting (AGM), printing of computerized national identity card (CNIC) number on
dividend warrants, and registering as a group.
In addition, 72 investor
complaints pertaining to non-issuance of shares, non-verification of transfer
deeds and non-payment of dividends were resolved.
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