SECP issues notices to 26 public listed firms

Unmaintained websites

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Saturday said it had issued showcause notices to 26 public listed companies failing to comply with the commission directive on maintenance of updated websites.

“Since July 2016, around 26 show-cause notices (and 11 orders) have been issued to defaulting companies,” the commission said in a statement. The SECP stressed on all the public listed companies to maintain fully functional as well as updated websites

“Websites are like virtual faces of the entities so every company should have its portal to interact with the pubic as well as its shareholders conveniently,” it said

The statement said keeping in view partial and convenience-based disclosure adopted by some companies, Circular 43 of 2015 was issued in December 2015 to reinforce that companies should display all relevant information on their website by following the sequential order in line with the earlier directions of the Commission.

Moreover, in view of the diversity of stakeholders especially shareholders accustomed to Urdu companies were directed to keep certain information in Urdu on their websites through its notification issued on December 10, 2015.

For shareholders facilitation and pictorial guide to companies, a snapshot of sample website (in English and Urdu) is also as placed on the SECP’s website.

“It is however noted that despite the lapse of considerable time companies are not adhering to directives in letter and spirit,” the statement said. “The SECP is, thus, rigorously seeking compliance by the companies by issuing notices and initiating proceedings against defaulting companies.”

It added that the commission has also noted that companies are omitting or disclosing partial and distorted information regarding board of directors’ financial statements and investor complaint mechanism. “This practice defeats the very purpose of timely accessible and legible disclosure of information on the website,” it said.

One of the key objectives of Companies Ordinance 2016 is to encourage use of technological tools. “The 2016 ordinance requires companies to display information notices and financial statements on website,” it said.

Moreover, for shareholders the main source for obtaining quarterly results is now through website of companies hence functional website is even more imperative than it was in the past.

Therefore, while it is re-emphasised to timely place all announcements or notices financial statements for dissemination purposes the investor complaints’ resolution and query mechanism plays a pivotal role in interaction with all stakeholders especially shareholders.

Companies are, therefore, encouraged to give all relevant information in addition to that prescribed under the SECP’s directives for facilitation of stakeholders. The SECP through its directives anticipates clarity accessibility facilitation and uniformity in information disclosed on the website.