Karachi: The Securities & Exchange Commission has imposed a penalty on Chippa Securities (Pvt.) Limited for its failure to file annual returns for the year 2021, as mandated by the Companies Act, 2017. The penalty, detailed in the order under Section 130 read with Section 479 of the Act, was issued on September 11, 2025, following a series of reminders and a show cause notice that were not adequately addressed by the company’s management.

The proceedings, identified as CASE No. AOK-234/2024, were initiated after the Company Registration Office in Karachi reported the company’s non-compliance with Section 130(3) of the Act. This section requires companies to file their annual returns within thirty days from the date of their Annual General Meeting or, if no meeting is held, from the last day of the calendar year to which the returns relate.

Despite being given multiple opportunities to justify the default, the company’s representative, Muhammad Zeeshan Merchant, could not provide a satisfactory explanation during the hearing. Consequently, the adjudicating officer imposed a penalty of Rs. 10,000 on the company. The management has been instructed to deposit the penalty within 30 days and submit the overdue returns promptly.

According to information available from the Pakistan Stock Exchange (PSX), the securities market is categorized under the designated market category. The implications of the penalty may impact the company’s standing and future compliance requirements. The order mandates that a record of the penalty be maintained in the company’s file for reference, with further action to be taken by the concerned registrar if necessary.