ISLAMABAD, Oct 7: The Securities and Exchange Commission of Pakistan has penalized nine companies/firms of the Karachi Stock Exchange for failing to maintain high levels of integrity, promptitude and fairness while conducting their businesses and for indulging in improper conduct on the stock exchange.
On company, Mars Securities (Pvt) Ltd, was issued a warning for undertaking actions which were contrary to the conduct expected of brokers.
Eight companies/firms were found to have been engaged in or had allowed trades in the market merely for the purpose of creating a false impression of trading activity in particular scrips (wash trade).
These companies were issued show-cause notices, following which they were called upon for hearings to express their view points. After careful deliberations, the SECP found them in violation of Rule 8(iv) of the Brokers and Agents Registration Rules, 2001, and exercised its powers under the Rule 8(b) to issue subsequent orders.
The list of the brokerage companies fined included: Atlas Investment Bank Limited, which was fined Rs100,000; Motiwala Securities (Pvt) Ltd Rs25,000; Ismail Iqbal Securities (Pvt) Ltd Rs25,000, Moosa, Noor Muhammad Shahzada & Co (Pvt) Ltd Rs25,000; Darson Securities (Pvt) Ltd Rs25,000; Aqeel Karim Dhedi Securities (Pvt) Ltd Rs50,000; Multiline Securities (Pvt) Ltd Rs25,000; and Bawa Securities (Pvt) Ltd was fined Rs25,000.
The SECP has so far penalized 17 brokerage companies/firms for the same violation i.e. carrying out wash trades.
