The Sindh High Court has granted interim relief to Security Leasing Corporation Limited (SLCL) in its ongoing legal battle against the Securities and Exchange Commission of Pakistan (SECP), temporarily preventing any coercive action against the company while its appeal is under judicial consideration.
According to court documents, Security Leasing Corporation has challenged the SECP’s decisions that upheld the cancellation of its Non-Banking Finance Company (NBFC) license. The company filed an appeal before the Sindh High Court under Section 34 of the Securities and Exchange Commission of Pakistan Act, 1997, seeking suspension of the impugned orders and protection from winding-up proceedings or delisting until the matter is finally decided.
The High Court’s order, dated September 24, 2025, granted urgency to the matter and issued notices to the respondents, including the SECP and the Pakistan Stock Exchange. Importantly, the court directed that no further coercive action be taken against the appellant until the next hearing, providing temporary relief to the company as the legal proceedings continue.
In its submissions, Security Leasing Corporation argued that the cancellation of its NBFC license was carried out through an unauthorized officer rather than the competent authority prescribed under the Companies Ordinance, 1984. The company further contended that it had complied with regulatory requirements by submitting an auditor-certified equity report and had sought withdrawal of an earlier interim order, but its submissions were allegedly not considered before the license was cancelled.
The appeal also challenges an SECP Appellate Bench order dated April 8, 2025, which upheld the earlier cancellation decision. According to the affidavit submitted before the court, the company believes the appellate order failed to adequately address its legal arguments and supporting documentary evidence, resulting in what it describes as a violation of due process and principles of natural justice.
Security Leasing Corporation maintains that the cancellation of its license has severely impacted its ability to operate as an NBFC, potentially affecting its business operations, stakeholders, and corporate reputation. The company has requested the court to suspend both the 2019 and 2025 orders while the appeal is pending, arguing that immediate enforcement could cause irreparable harm.
With the interim protection now in place, the case will proceed through the judicial process, where the High Court will examine the legality of the SECP’s actions and determine whether the challenged orders should ultimately be upheld or set aside. The outcome of the proceedings could have important implications for Security Leasing Corporation’s regulatory status and future operations.
