The Securities and Exchange Commission of Pakistan (SECP) has sent show-cause notices to 28,761 companies. These companies did not submit the required details about their beneficial owners. This action is meant to increase transparency.
The SECP has given these companies 30 days to file Form 19. If they do not comply within this time, legal action will follow.
As per the Companies Act, 2017, companies must provide information on their beneficial owners. A person who owns 25% or more of the shares or voting rights in a company is considered a beneficial owner.
Also, a person who has indirect control over a company is seen as an ultimate beneficial owner.
The SECP says these companies did not submit Form 19, which is the mandatory form for disclosing ultimate beneficial ownership details.
The notices are part of an effort to improve corporate transparency. They are also meant to ensure that companies follow the law.
