SECP cautions listed companies

ISLAMABAD, January 2, 2014: The Securities and Exchange Commission of Pakistan (SECP) cautioned the listed companies to file their annual and quarterly accounts to the Registrar of Companies and to the Enforcement Department of the SECP separately.

It has been observed that a majority of listed companies who file their annual and quarterly accounts through eService, have ended up submitting their accounts only to the Registrar of Companies and not to the Enforcement Department.  Feedback and clarification from the listed companies reveal that the listed companies are in the impression that once they filed their accounts via eService, they would be submitted to not only to the Registrar of Companies but also to the Enforcement Department.

 

The requirement of the Companies Ordinance, 1984, being the relevant law is that all the listed companies are required to file their quarterly and annual accounts to the Registrar of Companies; and to the Commission, separately, in terms of Section 242, 233(5) and 245(1)(b) of the Companies Ordinance, 1984. The Registrar of Companies receives these accounts in the capacity of custodian of the corporate records, whereas the Enforcement Department requires these accounts for regulatory oversight of the companies.

The SECP has recently made e-filing mandatory for filing of documents, returns, accounts and applications, with the Enforcement or the Registrar, through its S.R.O 211 (I) 2013 dated March 13, 2013. The above circular however specifically provides that such facility would only be available for those filings of documents, returns, accounts and applications for which eService submission is available. Currently the service system caters for submission of annual and quarterly accounts only to the Registrar and not to the Enforcement Division.

This lack of awareness has been witnessed in most of the recent filings, where the accounts of a majority of listed companies filed through eService, were submitted to the Registrar of Companies, thereby discharging their obligation for submission of these documents towards the Registrar only, and not with the Enforcement Department.

Hence, for the purpose of clarification, all the listed companies, who are filing their annual and quarterly accounts through e-filing, are advised to also ensure the transmission of required number of copies in physical form to the Enforcement Department of the SECP.