SECP unveils regularization plan to support struggling companies

June 14, 2024 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has launched a regularization scheme for companies grappling with defaults on annual filings.

The regularization window will remain open from June 15, 2024, to September 15, 2024, providing an opportunity for companies to file their overdue annual returns, documents and accounts by simply paying regular filing fees.

There will be no additional charges, penalties, or late fees for filing overdue returns during the scheme period.

The Companies Regularization Scheme applies to a wide range of companies, including non-listed public companies, private companies, SMCs, foreign corporations, and nonprofit organizations established under Section 42 of the Companies Act.

However, this regularization scheme is not applicable to listed companies.

The scheme covers defaults committed up to October 28, 2023. To make the process simple and easy, companies are required to make physical filings so that returns for multiple years can be filed simultaneously.

SECP's Company Regularization Scheme aims to promote compliance and ease regulatory burden by allowing companies to regularize filing defaults without heavy penalties.

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