ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued show-cause notices to nearly 29,000 companies over their failure to provide details about their ultimate beneficial ownership.
According to the SECP, the companies failed to file mandatory Form 19 containing information about their Ultimate Beneficial Owner (UBO). Under the relevant regulations, a person holding at least 25% of a company’s shares or voting rights qualifies as a UBO.
Furthermore, anyone exercising direct or indirect effective control over a company also falls under the UBO definition.
Companies Given 30-Day Deadline
The SECP said submitting ultimate beneficial ownership information remains mandatory under the Companies Act, 2017.
Therefore, the notified companies must submit Form 19 within 30 days from the issuance of the notices.
The regulatory action aims to strengthen corporate transparency and ensure companies disclose information about individuals who ultimately own or control them.
The SECP has warned that companies failing to meet the deadline will face legal action.
Moreover, the notices signal stricter regulatory enforcement regarding beneficial ownership reporting requirements.
The requirement helps authorities identify individuals behind corporate ownership and control structures.
Consequently, companies must ensure their ownership information remains accurate and compliant with applicable legal requirements.
The SECP has urged the affected companies to fulfil their statutory obligations within the specified period to avoid further action.
