SECP issues show-cause notices to 28,761 companies over beneficial ownership disclosures

Profit by Pakistan Today reported that the Securities and Exchange Commission of Pakistan (SECP) has served show-cause notices on 28,761 companies accused of not disclosing their ultimate beneficial owners (UBOs). Each recipient has been given 30 days to comply, failing which the regulator may start penal proceedings. Every registered firm must report those who truly own or control it through Form 19, the regulator said.

The term refers to the real person who owns or controls a company, directly or via another entity, and covers anyone holding at least 25% of shares or voting rights. Both Regulation 48(5) of the Companies Regulations, 2024 and Section 123A of the Companies Act, 2017 underpin the duty. SECP data put the number of registered companies at 301,615 by the close of June 2026.

Reporting is meant to help regulators look past company names and layered ownership to see who benefits from or controls a business. The rule is designed to curb use of corporate structures for laundering funds, hiding wealth and moving illicit money. The SECP can begin penal proceedings against firms that miss the deadline.