SECP Cracks Down on 28,761 Companies for Failing to Report Ultimate Beneficial Owners

Notably, the Securities and Exchange Commission of Pakistan has issued show cause notices to 28, 761 firms for failing to submit mandatory details of their ultimate beneficial owners, in a major move to strengthen corporate transparency.

Key points

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• The SECP remarked providing details of ultimate beneficial owners is mandatory under the Businesses Act, 2017.
• The firms receiving notices have been given 30 days to submit Form 19 and comply with the requirement.
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• Under the regulatory requirements, a person holding 25 percent or more of a company's shares or voting rights is considered an ultimate beneficial owner.

Notably, the SECP remarked the businesses had failed to submit Form 19. It is required for reporting information regarding ultimate beneficial owners under the Businesses Act, 2017. IMF Warns Against Gas Cost Reduction in Pakistan.

Under the regulatory requirements, a person holding 25 percent or more of a company's shares or voting rights is considered an ultimate beneficial owner. A person who exercises direct or indirect effective control over a firm is additionally treated as an ultimate beneficial owner.

For context, the SECP remarked providing details of ultimate beneficial owners is mandatory under the Businesses Act, 2017. The requirement is aimed at improving corporate transparency and identifying the individuals who ultimately own or control firms.

For context, the firms receiving notices have been given 30 days to submit Form 19 and comply with the requirement.

In practice, the SECP cautioned that businesses failing to comply within the given period will face legal action under the applicable law. Stay Connected with ProPakistani.

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For now, SECP Cracks Down on 28, 761 Companies for Failing to Report Ultimate Beneficial remains the part of the story worth watching, and further updates are likely as more details are confirmed.