SECP Freezes Bank Accounts of Nearly 40,000 Companies Over Missed Filings

For context, the Securities and Exchange Commission of Pakistan (SECP) has declared 39, 704 firms inactive after they failed to submit their annual returns and/or financial statements for four years.

Key points

• The SECP's city-wise figures additionally included 4, 868 businesses in Karachi, 2, 031 in Peshawar and 1, 861 in Multan.
• Lahore had the highest number of firms declared inactive, with 13, 927, followed by Islamabad with 13, 859.
• Kabir Ahmed Sidhu remarked a transparent and reliable corporate register was the foundation of business confidence.
• The regulator remarked the move is aimed at improving the reliability of Pakistan's corporate register and preventing the misuse of inactive businesses.
• While their existing accounts will remain frozen until the required filings are completed, under the restrictions, inactive firms will not be allowed to open new bank accounts.

Notably, the regulator remarked the move is aimed at improving the reliability of Pakistan's corporate register and preventing the misuse of inactive businesses.

While their existing accounts will remain frozen until the required filings are completed, under the restrictions, inactive firms will not be allowed to open new bank accounts. They will additionally be unable to access financial services during their inactive status. Govt to Launch Rs. 100 Billion PSX Sukuk. Inactive Firms Must Complete Filings to Reactivate.

In practice, the SECP remarked businesses seeking to regain active status must submit all outstanding filings. During the inactive period, changes to the firms' directors will not be registered.

Notably, the regulator remarked the action would assist prevent inactive firms from being misused and strengthen the integrity of the corporate register. Lahore and Islamabad Account for Most Inactive Firms.

In practice, the SECP's city-wise figures additionally included 4, 868 businesses in Karachi, 2, 031 in Peshawar and 1, 861 in Multan. While 1, 102 were in Gilgit, 436 in Quetta and 236 in Sukkur, faisalabad had 1, 384 inactive firms.

SECP Chairman Dr. Kabir Ahmed Sidhu remarked a transparent and reliable corporate register was the foundation of business confidence.

He remarked separating inactive businesses from the register was significant for protecting the financial system, adding that businesses could regain active status by fulfilling their legal requirements. Stay Connected with ProPakistani.

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Taken together, the developments around SECP Freezes Bank Accounts of Nearly 40, 000 Companies Over Missed Filings point to a situation that is still moving, and the coming days should bring more clarity.