Islamabad: In a significant move to enhance transparency and investor protection, the Securities and Exchange Commission of Pakistan (SECP) has issued a directive mandating unlisted licensed companies to upload their audited financial statements on a dedicated portal managed by the Pakistan Stock Exchange (PSX). This directive, dated January 23, 2025, aims to set higher standards of governance and disclosure for companies engaged in activities with substantial public interest considerations.
The SECP, empowered under Section 20 of the Securities and Exchange Commission of Pakistan Act, 1997, is focused on regulating the financial services market to promote integrity and competence in the capital market. The directive underscores the need for greater transparency, enabling the public and investors to better analyze the performance of these companies. According to the SECP, this move is crucial for fostering an environment of trust and accountability within the market.
Under the new regulations, unlisted licensed companies are required to sign an agreement with PSX within 30 days of the directive's issuance. These companies must also create a USER ID to access the Financial Portal for Unlisted Companies (FPUC) developed by PSX. This portal will serve as the platform for uploading their latest annual audited financial statements for public access.
According to information available from the Pakistan Stock Exchange (PSX), the directive also mandates continuous compliance, requiring these companies to upload future audited financial statements as per the timelines specified under their applicable laws. This requirement will remain in place until the company achieves listing status. The SECP has made it clear that any non-compliance will be treated as a violation, and necessary actions will be taken under the relevant laws.
This initiative is expected to significantly impact the designated market category by enhancing the quality of disclosures and ensuring that investors have access to critical financial information. The SECP's directive is a step towards aligning Pakistan's financial transparency standards with international best practices, thereby boosting investor confidence in the country's capital market.