ISLAMABAD - The Enforcement Department of Securities and Exchange Commission of Pakistan (SECP), in July and August, has initiated 42 new show-cause proceedings due to non-compliance with legal requirements.

New show-cause proceedings due to non-compliance with legal requirements regarding auditors’ reports, directors’ powers, delayed/non-filling of cost audit reports, holding annual general meetings, issue of capital rules, investment in associated companies, misstatement of facts, takeover regulations, disclosure of directors’ interests, circulation of financial statements, employees’ provident funds, and security deposits. During the period under review, the department concluded 50 ongoing proceedings against the companies and chief executives, directors and auditors of the companies.  The department while facilitating a company allowed a listed company to issue right shares at par. It also accorded approvals and relaxation from certain provisions of laws and the rules. These approvals pertain to appointment of cost auditors under the 1998 Companies (Audit of Cost Accounts) Rules filing of consolidated financial statements, printing of CNIC numbers on dividend warrants and grant of loan to a director. In addition, 19 investor complaints pertaining to non-issuance of shares, non-verification of transfer deeds and non-payment of dividends were resolved.