Lahore: Al Haq Securities (Private) Limited has been penalized for failing to comply with regulatory requirements concerning the timely filing of its financial statements. The Securities and Exchange Commission of Pakistan (SECP) has issued a final order following proceedings under Sections 233 and 479 of the Companies Act, 2017. The proceedings were initiated by a Show Cause Notice (SCN) issued on March 20, 2024.
The company was found to have failed to file its audited financial statements for the year ending 2023 within the timeline stipulated by the Companies Act, 2017. This act of non-compliance rendered Al Haq Securities liable for a penalty on the standard scale, as outlined under Section 233(4) read with Section 479 of the Act. Despite multiple opportunities for a hearing, the company and its directors did not appear to defend their position, leading to the issuance of the penalty.
On April 15, 2024, Mr. Farhan Naeem, representing Al Haq Securities, appeared to argue the case. He attributed the delay to internal restructuring, claiming it was an inadvertent oversight. However, his justification was deemed insufficient by the adjudicating officer. The representative's request for leniency was not accepted, considering the serious nature of the default.
According to Section 233 of the Companies Act, 2017, listed companies are required to file their financial statements with the registrar within thirty days of the annual general meeting. The failure to comply with this requirement constitutes a significant breach, raising concerns about the company's management and internal controls. The Commission emphasized the necessity for companies to adhere strictly to financial reporting laws to ensure transparency and reliability.
In accordance with the Commission's delegated powers, the adjudicating officer imposed a penalty of Rs. 15,000 on the company. The decision underscores the importance of directors exercising due diligence in business decisions and compliance with legal requirements.
The penalty must be deposited in designated bank accounts within thirty days from the receipt of the order. Non-payment will result in recovery proceedings against the company and its directors. This order does not preclude any further actions the Commission may take based on additional investigations or findings.
According to information available from the Pakistan Stock Exchange (PSX), Al Haq Securities is categorized under the designated market of financial services. The recent penalty highlights the regulatory body's commitment to enforcing compliance and ensuring that market participants adhere to prescribed standards, maintaining the integrity of the financial sector.