ISLAMABAD, Oct 19 (APP):The Securities and Exchange Commission of Pakistan (SECP) on Monday initiated an investigation into the accuracy and completeness of disclosures in the Initial Public Offering (IPO) of the SE Fruits and Vegetable Limited IPO.
The investigation will examine whether any gaps, omissions or negligence occurred by the responsible parties in reporting the information and determine where responsibility lies, said a news release.
The inquiry will review the Pakistan Stock Exchange’s role as a front-line regulator; the consultant to the issue’s due diligence, role in preparing the prospectus and certification of its accuracy; and the auditor’s audit of the company’s financial statements. It will also examine the SECP’s internal procedures for review and approval of IPO applications.
The findings of SECP’s inquiry into the SE Fruits and Vegetable Limited IPO will guide improvements to the IPO review and approval framework. These will cover measures for adequate and accurate disclosures, proper discharge of duties by auditor and consultants, timely identification and proper reporting of all any material issues and coordination between PSX and SECP.
The SECP Chairman Dr Kabir Sidhu said, “Every IPO must meet clear standards of disclosure, transparency, scrutiny and accountability. We will act firmly where failures are established and use the inquiry’s findings to close gaps in the IPO regime. Our objective is a rigorous and transparent approval process with adequate disclosures that protects investors and supports credible businesses seeking capital.”
Source: APP (Associated Press of Pakistan)
