SECP penalises brokers

March 04, 2014

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ISLAMABAD: The Securities Market Division of the Securities and Exchange Commission of Pakistan (SECP) took enforcement actions and penalised market participants for non-compliance with the rules and regulations during February 2014.

Action was taken against Moonaco Securities and penalty of Rs25,000 was imposed under the 2001 Brokers and Agents Registration Rules following onsite inspections of the brokerage houses of the Karachi Stock Exchange Limited (KSE).

Moreover, warning letters were issued to Taurus Securities and A.H.M. Securities for rules’ violation.

Furthermore, 18 orders were passed against directors/beneficial owners of 13 listed companies under Section 224(4) of the 1984 Companies Ordinance for late filing of returns of beneficial ownership.

In this regard, beneficial owners of 8 listed companies were penalised and the rest were warned, and directed to comply with applicable regulatory framework in future.

On account of non-settlement of investors’ complaints, Highlink Capital (Private) limited, broker of the Lahore Stock Exchange Limited, was suspended.

In another instance, on account of the use of investors’ shares without authority, the SECP penalised First National Equities Limited, a broker of the KSE with an amount of Rs500,000 under Section 28 (2) of the 1997 CDC Act.

During February 2014, 16 investor complaints pertaining to brokers and 10 complaints pertaining to listed companies were resolved.

In addition, to help promote and develop the capital market, the SECP granted approval to Hascol Petroleum Limited to issue, circulate and publish a prospectus for the issue of 25 million ordinary shares to the institutional investor, high net worth individuals and the general public.