SECP intensifies recovery drive for various penalties
To date, the SECP has successfully recovered Rs 26 million in penalties during the financial year 2024-25, constituting 30% of the fines imposed during the said period. Efforts are underway for recovery of outstanding penalties through periodic communication with companies as well as recovery through Land Revenue Department and respective High Courts.
The above recovery is exclusive of Rs 334 million of penalties imposed by the SECP on four unlisted companies involved in illegal deposit-taking activities, penalty recovery proceedings for which have already been initiated through Prosecution and Civil Litigation Department of SECP; total amount of penalties imposed stands at Rs 425 million.
Section 42B of Securities and Exchange Commission of Pakistan Act, 1997 empowered the SECP to recover the imposed penalties as a decree for payment of money, and the High Courts are empowered to exercise powers of an executing Court as per Code of Civil Procedure, 1908 for recovery of penalties. Executing courts can attach any immovable or movable property including bank account of company on whom penalties have been imposed. Under the said Section 42B, penalties can also be recovered by the SECP as arrears of land revenue.
As part of its penalty recovery regime, the SECP has issued multiple reminders with one-month intervals to defaulter companies, providing an adequate opportunity to deposit penalties with the SECP in a timely manner.
In cases where offenders have not responded and have failed to deposit the imposed penalties despite issuance of multiple reminders, the SECP has initiated proceedings for recovery of penalties through its Litigation Department.
The SECP remains dedicated to protecting stakeholder interests and mitigate systemic risk through vigorous enforcement of its administered laws, aimed at creating a compliant culture in the corporate sector.
Copyright Business Recorder, 2025
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