SECP issues notices to 28,761 companies over UBO disclosure

Mettis Global reported that the Securities and Exchange Commission of Pakistan (SECP) has issued show-cause notices to 28,761 companies that have not lodged the compulsory Form 19 on their beneficial ownership. The regulator says the filing is mandatory under the Companies Act, 2017, and the companies in question have not complied. The step is aimed at tightening corporate transparency.

Under the regulator's definition, a person holding 25% or more of a company's shares or voting rights is treated as an ultimate beneficial owner (UBO). Anyone who exercises direct or indirect effective control over a company is also treated as one, the SECP said.

The affected companies must lodge Form 19 within 30 days, after which non-compliant firms face legal action, the regulator said.