SECP pursues action over SE Fruits disclosures, seeks stronger audit oversight

Business Recorder reported that the Securities and Exchange Commission of Pakistan (SECP) has launched a regulatory case over what it called material discrepancies in the IPO prospectus of SE Fruits and Vegetable Limited. The regulator said in a statement on Friday that the discrepancies stemmed from information taken from the company's audited financial statements. The fresh produce firm had won SECP approval last month to offer 30 million ordinary shares.

The SECP had already halted further steps after the book building process to protect investors. The company then withdrew the offering voluntarily, intending to return with fuller disclosures later, and subscription money was refunded. The Commission is now reviewing the case to determine who is responsible for procedural irregularities, and it will act wherever breaches are confirmed.

The regulator also used the case to call for a stronger Audit Oversight Board, saying it needs stronger inspection and enforcement tools, skilled personnel and steady financing. It argued that reliable audits and accurate accounts hold up equitable share valuations, dependable bank credit and proper tax assessment. Sections 134 and 136 of the Securities Act, 2015, treat fraud-based inducement of securities deals and false or misleading statements as criminal offences.