Karachi court rejects TRG Pakistan suit against SECP

A Karachi civil court rejected TRG Pakistan TRG’s suit against the Securities and Exchange Commission of Pakistan (SECP) on October 24, dismissing the company’s challenge to regulatory show-cause notices and leaving the SECP able to proceed with those matters.

The suit challenged notices issued under Sections 86, 178 and 179 of the Companies Act, 2017. TRG had sought to have the notices declared unlawful and to prevent the regulator from taking action under them. The company alleged that complaints by two of its non-executive directors had prompted the notices and claimed the SECP was acting to disrupt its business and facilitate a hostile takeover.

The court found that the civil court was not the appropriate forum while statutory remedies were available. It said TRG had not established that the SECP lacked jurisdiction or had acted for improper reasons, and described the company’s allegations of bad faith as vague and unparticularised. TRG closed at Rs54.71 on Tuesday, October 27.