ISLAMABAD, Nov 30: The Securities and Exchange Commission of Pakistan has suspended the registration of Hum Securities Limited, a corporate member of Pakistan Mercantile Limited (PMEX).

The broker, an ex-member of the Karachi Stock Exchange Limited (KSE), had sold its membership in May 2012. Resultantly, a large number of complaints regarding settlement of claims worth Rs16 million were lodged by investors against the broker who had repeatedly assured the Karachi Stock Exchange about settling all claims.

Despite constant follow-up by the Commission and lapse of considerable time, a large number of complaints still remain un-resolved.

The broker was in financial distress for over a certain period.

Thereafter, the commission on Oct 25 served a show-cause notice to the broker under the Commodity Exchange and Futures Contract Rules, 2005.

The hearing was adjourned twice on the request of the broker and was finally fixed for Nov 28.

However, during the hearing, representative of the broker failed to defend the case and could not comment on any of the violations highlighted in the show-cause notice.

The commission noted that despite lapse of five months, no serious effort was made by the broker.

Considering that non-settlement of investors’ complaints and deteriorating financial conditions are serious matters, the commission, being cognizant of the fact that the broker’s continuance would not be in the interest of market, suspended the Pakistan Mercantile Limited  registration of Hum Securities Limited with immediate effect and till the resolution of all legitimate investors’ complaints.