SECP probe: 11 firms get stay orders from courts

LAHORE: The 11 companies who are facing 12 Securities and Exchange Commission of Pakistan (SECP) cases, are hiding behind stay orders in the honourable Sindh and Islamabad high courts where they are raising newly extended SECP chairman Aamir Khan’s under performance in legal battles, BOL News has learnt.

According to the Pakistan Stock Exchange website, there are 12 stay orders against the SECP in the country that have been raised by 11 companies.

These include K-Electric Limited, Sindh Abadgar Sugar Mills, Hascol Petroleum Limited, Shahmurad Sugar Mills, Adam Sugar Mills, Alnoor Sugar Mills, Habib Sugar Mills, Saif Power Limited, First National Equities, Alabbas Sugar Mills and Unity Foods Limited.

Of the 11, six companies are sugar mills who are mainly subject of investigation regarding review of the financial accounts and audits.

All the stay orders have been granted by the honourable Sindh High Court during the current fiscal year 2021.

SECP chairman Aamir Khan, who was assigned the second tenure on December 7 by the Federal Cabinet, has new challenges for the next year, sources told BOL News.

The Unity Food Limited is the only company that has secured two stay orders against the SECP, questioning its performance as an authority.

It is one of the largest wheat importers in the country and backed by leading international Singapore-based agro company Wilmar International, who invested $8.49 million in July 2020.

Both these stay orders are during the tenure between 2018 in the Islamabad High Court, (show-cause notice under section 257), when Aamir Khan joined the SECP as commissioner and 2019 (Sindh High Court – show-cause notice under section 221) when he was promoted as the chairman.

A SECP official, on the condition of anonymity, told BOL News that Aamir Khan’s second tenure would be a tough year for the companies who have not been able to follow regulations.

“Considering the present national and international financial circumstances, it is now next to impossible for any companies regardless how big they are, to get away with any irregularities,” he concluded.

Shaherbano Rizvi, a legal expert says that it is a common practice by the companies to use stay orders to hide themselves.

She said they don’t realise that the honourable court would never allow them to use this privilege against the law of the land.

“All the stay orders eventually end one day and cannot sustain for long. I sincerely hope [the] SECP along with [the] honourable courts will find a solution where checks and balances shall be checked without any hindrances,” Rizvi concluded.

Also Read

SECP registers first life insurer as pension fund manager

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has granted permission...