SECP Achieves 88% Compliance in Financial Disclosures

The Securities and Exchange Commission of Pakistan (SECP) has reported a significant improvement in regulatory compliance, revealing that 88% of unlisted licensed entities are now publicly uploading their audited annual financial statements via the dedicated portal of the Pakistan Stock Exchange (PSX). This development reflects a substantial enhancement in disclosure practices within the regulated, yet unlisted, corporate segment.

These filings are being made through the PSX’s Financial Portal for Unlisted Companies (FPUC), a centralized digital platform designed to promote transparency and facilitate public access to financial information of companies operating outside the listed market framework.

The SECP attributed this progress to a regulatory directive issued in January last year, mandating all unlisted licensed companies to submit and publicly disseminate their audited financial statements through the PSX portal. In addition, such entities were required to execute formal agreements with PSX to obtain portal access and to ensure submission of financial reports within the stipulated statutory timelines.

According to the Commission, the directive was introduced to elevate disclosure standards, reinforce governance structures, and enhance transparency across sectors involving significant public interest. These sectors include brokerage houses, insurance companies, non-banking finance companies (NBFCs), modarabas, and other regulated entities operating under SECP supervision.

The public availability of audited financial statements is expected to empower investors, creditors, and other stakeholders to more effectively evaluate corporate performance, financial stability, and risk exposure. By consolidating disclosures within a single, accessible platform, the regulator aims to introduce greater uniformity, oversight, and visibility across the unlisted financial services domain.

The SECP highlighted that compliance levels have surged from negligible participation prior to the directive to the current 88% disclosure rate. To ensure adherence, the Commission undertook an extensive, sector-wide compliance initiative to drive implementation.

The regulator further confirmed that enforcement proceedings have been initiated under the applicable legal provisions against entities that remain non-compliant.

Reiterating its commitment to robust oversight, the SECP emphasized that it will maintain a strict enforcement posture to advance transparency, strengthen accountability, uphold governance standards, and safeguard investor interests throughout Pakistan’s financial regulatory framework.