ISLAMABAD: The Appellate Bench of the Securities and Exchange Commission of Pakistan (SECP) has dismissed an appeal filed by VIS Credit Rating Company Ltd against the penalty imposed for multiple regulatory violations of Credit Rating Companies Regulations 2016.
The appeal challenged the SECP’s order dated Oct 16, 2019 passed by Commissioner SMD under Section 159 of the Securities Act 2015, which determined the company’s non-compliance with several regulations.
These violations included issues related to conflict of interest in rating assignments, failure to conduct an internal audit review, inadequate risk management policies and framework, absence of indicative rating, and lapses in maintaining regulatory documentation.
After reviewing the arguments, the bench upheld the SECP’s decision, reaffirming the penalty of Rs800,000 on VIS Credit Rating Company, (formerly JCR-VIS Rating Company Ltd).
The bench emphasised the importance of strict adherence to the regulatory framework to maintain transparency and integrity in the credit rating industry.
Published in Dawn, March 7th, 2025
