Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has imposed a penalty on Saudi Pak Leasing Company Limited for failing to adhere to regulatory requirements concerning the disclosure of acquisition intentions. This development follows an adjudication process that commenced with a Show Cause Notice issued on July 13, 2023, under Section 126 of the Securities Act, 2015.

The hearing, initially scheduled for April 4, 2024, was conducted on April 25, 2024, following a rescheduling request from the Respondent. The proceedings involved key representatives from Saudi Pak Leasing Company, including the Chairman of the Board, the Chief Executive Officer, the Company Secretary, and the Chief Financial Officer. During the hearing, these representatives acknowledged the non-compliance and attributed it to inadvertent oversight.

The issue arose from the acquisition intentions of Ansari Brothers (Pvt.) Limited, which made a Public Announcement of Intention on December 5, 2022, to acquire a significant portion of shares in Saudi Pak Leasing Company. The company, however, failed to fulfill regulatory obligations outlined in the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017. Notably, the company did not make immediate disclosures to both the Securities Exchange and the SECP as required by regulations.

According to information available from the Pakistan Stock Exchange (PSX), the company only posted the Public Announcement of Intention on the exchange platform on December 7, 2022, neglecting the necessary communication with the Commission. This oversight was contrary to the stipulations in Regulation 5(1)(a) and 5(2) of the Takeover Regulations.

The SECP, after considering the written and verbal submissions from Saudi Pak Leasing Company, concluded the proceedings by imposing a penalty of Rs. 50,000. The regulatory body emphasized the importance of compliance with applicable laws and directed the company to deposit the fine within thirty days from the date of the order. The SECP also indicated that this order does not preclude further actions that may be taken against the company as per the law.

Saudi Pak Leasing Company Limited is reminded to ensure meticulous compliance with all regulatory requirements to prevent future contraventions, as the SECP continues to monitor adherence to statutory obligations within the market category.