Karachi: The Securities and Exchange Commission of Pakistan (SECP) has concluded its proceedings against Seven Star Securities (Private) Limited, following the company’s failure to file annual returns for the fiscal years 2021 and 2022. This procedural lapse was addressed in an order issued by the adjudicating officer under sections 130 and 479 of the Companies Act, 2017, as detailed in Case No. AOK-952/2024, dated September 11, 2025.
The case stemmed from a complaint by the company registration office in Karachi, which reported that Seven Star Securities had not met the statutory requirement to submit its annual returns within the prescribed timeframe. According to the Companies Act, annual returns must be filed within thirty days following the company’s Annual General Meeting (AGM) or by the end of the calendar year if no AGM is held. The failure to comply with this regulation subjected the company to a penalty under the provisions of the Act.
On January 9, 2024, a Show Cause Notice was issued to the company, requiring it to justify the delay in filing. The hearing, initially scheduled shortly after the notice, was eventually adjourned by a week. During the hearing, Maaz Ahmed, the authorized representative of Seven Star Securities, acknowledged the oversight and informed the officer that the necessary returns for both years had been filed, albeit late, in November 2023 and February 2024, respectively.
The adjudicating officer accepted the company’s explanation, noting that the delay was due to an oversight and that the necessary corrective measures had been taken. The officer also found no evidence that the delay adversely impacted any stakeholders, leading to a decision to condone the default. However, a warning was issued to the management to prevent any recurrence of similar defaults and to ensure timely compliance with all statutory requirements in the future.
According to information available from the Pakistan Stock Exchange (PSX), Seven Star Securities is classified under the designated market category of brokerage firms. The SECP’s order emphasized the importance of adhering to regulatory standards, underscoring the need for strict compliance with the Companies Act to maintain transparency and accountability in corporate governance.
The resolution of this case highlights the SECP’s role in overseeing corporate compliance and enforcing the legal framework governing companies in Pakistan. The order has been documented in the records of Seven Star Securities for future reference, with instructions for the registrar to take any necessary actions.