ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has launched an investigation into the initial public offering (IPO) of SE Fruits and Vegetable Limited after an anonymous complaint revealed major financial discrepancies in the company’s audit report, officials said.
The commission is also looking to strengthen the Audit Oversight Board after discrepancies were detected in the company’s audit report. The inquiry will examine whether any gaps, omissions or negligence occurred during the IPO approval process and determine responsibility where warranted.
The inquiry follows an anonymous complaint received on Sept 11, two days after the SECP approved the company’s prospectus based on its audited financial statements.
A preliminary review flagged differences between reported sales and sales tax returns for 2022-26, local sales that were not reflected in the company’s 2024 income tax return and a gap between reported sales, after accounting for closing receivables, and bank credits.
The complaint questioned the sales figures disclosed in the prospectus, which were based on the company’s audit report.
The SECP asked SE Fruits and Vegetable Ltd., its consultant to the issue and its auditors to provide documents and explain the discrepancies.
The company submitted additional material following a meeting with the parties concerned. The inquiry will examine the information and explanations provided to determine whether the differences resulted from inaccurate disclosures, accounting treatment or other factors.
The IPO process was suspended while the concerns were examined, and the company later withdrew its application.
The investigation will review the Pakistan Stock Exchange’s role as a front-line regulator, the consultant to the issue’s due diligence, its role in preparing the prospectus and certifying its accuracy, and the auditor’s examination of the company’s financial statements.
The inquiry will also assess the SECP’s internal procedures for reviewing IPO applications and handling the complaint.
Published in Dawn, October 20th, 2026
