Karachi: The Securities and Exchange Commission of Pakistan (SECP) has imposed a penalty on Mr. Ashfaq P. Alidina, the Chief Financial Officer of Highnoon Laboratories Limited, for failing to comply with mandatory disclosure requirements regarding changes in beneficial ownership. The order, dated March 19, 2025, follows a show cause notice issued to Mr. Alidina on February 11, 2025, highlighting non-compliance with Section 103 of the Securities Act, 2015, and related regulations.

Mr. Alidina, who has served as the CFO of Highnoon Laboratories since April 1, 2020, executed multiple trades involving the company’s shares. However, he did not submit the required disclosure forms to the SECP within the stipulated timeframe, as mandated by the law. The SECP, after examining the records, issued a show cause notice to Mr. Alidina, prompting a series of explanations and representations from him and his authorized representative.

In response to the SECP’s inquiries, Mr. Alidina argued that he does not hold any shares in his individual capacity. According to his statement, the joint account he holds with his father, who was the actual owner of the shares, does not necessitate disclosure under the current regulations. Mr. Alidina further contested the SECP’s 2022 clarification requiring disclosures even for NIL holdings, asserting that it lacks legal foundation.

The SECP, however, determined that Mr. Alidina, as the primary account holder, bore full responsibility for the transactions executed through the joint account, irrespective of the ownership claims. According to information available from the Pakistan Stock Exchange (PSX), adherence to disclosure requirements is critical for transparency and regulatory oversight in listed companies. The SECP emphasized that clarifications issued by the Commission are binding unless they directly contradict statutory provisions.

Despite Mr. Alidina’s arguments regarding legal interpretations and the nature of the joint account, the SECP concluded that he had failed to fulfill his statutory obligations. Consequently, a penalty of Rs. 25,000 was imposed, with instructions to comply with disclosure requirements promptly and to ensure strict adherence to legal and regulatory standards in the future. The SECP has directed Mr. Alidina to deposit the fine within 30 days.

This case underscores the importance of complying with regulatory requirements in the financial sector. It highlights the SECP’s commitment to enforcing transparency and accountability among executive officers of publicly listed companies, within the designated market category of the Pakistan Stock Exchange.