Lahore: The Securities and Exchange Commission of Pakistan (SECP) has concluded its proceedings against Mr. Muhammad Hameed regarding his acquisition of shares in Service Industries Textiles Limited. The regulatory body, after a series of hearings and submissions, decided not to impose any monetary penalties on Mr. Hameed but issued a formal warning for future compliance.
The case began with a Show Cause Notice issued on April 19, 2024, concerning Mr. Hameed’s failure to disclose his acquisition of 2,149,452 voting shares in Service Industries Textiles Limited. These shares were inherited from his late father, Mr. Ijaz Hameed, on January 17, 2024. According to the SECP, Mr. Hameed was required under Section 109(2) of the Securities Act, 2015, to make a disclosure of this acquisition within two working days, a requirement he reportedly failed to meet.
The acquirer, represented by Mr. Usman Khalid, the Company Secretary, acknowledged the oversight during a hearing on June 24, 2024. Mr. Hameed submitted a response on June 14, 2024, explaining that the non-compliance was inadvertent and due to a misunderstanding of the legal requirements. He assured that necessary disclosures were subsequently made. According to information available from the Pakistan Stock Exchange (PSX), the shares in question were announced to the public through the Pakistan Unified Corporate Action Reporting System.
The SECP’s decision not to impose a financial penalty was influenced by Mr. Hameed’s rectification of the compliance lapse and his commitment to adhere to the regulations in the future. However, the order emphasized a warning to ensure timely compliance with all applicable laws to prevent any future infractions.
The order also clarified that the proceedings could prompt further actions if more information comes to light regarding the management of Service Industries Textiles Limited. This case underscores the importance of regulatory compliance in the securities market, particularly in the designated market category of textiles.