Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has levied a penalty on Mr. Ashfaq P. Alidina, the Chief Financial Officer (CFO) of Highnoon Laboratories Limited, for failing to meet statutory disclosure requirements under the Securities Act, 2015. This enforcement action follows a prolonged delay in filing mandatory Beneficial Ownership forms, a cornerstone of transparency in corporate governance.
According to the SECP’s order dated September 11, 2025, Mr. Alidina did not comply with Sections 101 and 103 of the Securities Act, 2015, and related regulations that mandate executive officers to disclose their ownership status in the organization. The case emanated from a Show Cause Notice issued on November 14, 2024, after it was observed that Mr. Alidina did not submit the necessary forms within the stipulated seven-day period following his appointment as CFO on April 1, 2020.
The SECP’s order highlights that Mr. Alidina was required to submit Form 1 to Highnoon Laboratories and Form 5 to the Commission. However, these were filed with delays of 1,637 and 1,646 days, respectively, in October 2024. In his defense, Mr. Alidina argued that he was under the impression that no disclosure was necessary as he does not hold shares in his individual capacity, a stance that the SECP found to be a misinterpretation of the law.
During a hearing on December 11, 2024, Mr. Abdul Hanan, acting as the authorized representative for Mr. Alidina, reiterated the misunderstanding of legal obligations as the reason for non-compliance. Despite having filed the required forms subsequently, the SECP determined that the delay constituted a clear contravention of legal requirements.
According to information available from the Pakistan Stock Exchange (PSX), the requirements for disclosure, irrespective of shareholding status, are critical for maintaining market integrity. This ensures that investors have access to vital information for informed decision-making, reducing risks of insider trading and conflicts of interest.
The SECP’s adjudication concluded with the imposition of a monetary penalty of Rs. 5,000 on Mr. Alidina. The decision underscores the importance of adhering to regulatory frameworks, with the Commission emphasizing that ignorance or misunderstanding of law does not absolve one from compliance. Mr. Alidina has been directed to pay the fine within 30 days and to maintain strict adherence to legal obligations in the future.