SEC Denies Sui Northern Gas Pipelines Limited Exemption Request

Karachi: The Securities and Exchange Commission of Pakistan (SECP) has rejected a request from Sui Northern Gas Pipelines Limited for an exemption from a regulatory mandate, detailed in a notice issued to the company. The decision, made on the grounds of non-compliance with the Companies Act, 2017, was communicated through a formal letter dated June 27, 2024, which emphasized the company’s obligation to adhere to existing legal standards.

Sui Northern Gas Pipelines Limited had sought an exemption from Circular no. 07/2024, enacted on March 7, 2024, under Section 147 of the Companies Act, 2017. The circular imposes specific regulatory requirements on companies to ensure compliance with the act’s provisions. According to information available from the Pakistan Stock Exchange (PSX), the Commission’s denial may impact the company’s operational flexibility, although it reserves the right to initiate further action for any ongoing non-compliance.

The letter from the Commission clearly states that it will not grant the requested relief to Sui Northern Gas Pipelines Limited, thus obligating the company to fully comply with the stipulated regulations. Furthermore, the Commission’s response was issued without prejudice, leaving room for potential enforcement actions related to any violations of the act’s requirements.

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