ISLAMABAD, Oct 10: Securities and Exchange Commission of Pakistan has suspended M/s Investec Securities Limited (ITSL) membership of Karachi Stock Exchange for violation of the Broker’s Code of Conduct enshrined in the Brokers and Agents Registration Rules.

The decision announced by the SECP spokesman here on Friday was a sequel to the proceedings originally initiated by the KSE against the said company as the front-line regulator of capital market.

The proceedings were, however, stalled because ITSL, a listed member of the KSE, did not respond, despite repeated reminders, to the KSE’s directive to them to provide certain information relating to the brokerage firm’s trading in its own shares.

The matter was taken up by the SECP on KSE’s request. Both ITSL and KSE were called for a hearing before the Executive Director (Securities Market Division), SECP, on Sept 25, 2003.

The Executive Director directed ITSL to fully cooperate with the KSE in this regard. The latter, however, disregarded the directive and did not provide the requisite information.

While issuing the order of suspension, the SECP observed, with great concern, that ITSL’s conduct was an attempt to undermine KSE’s authority as the front-line regulator.