ISLAMABAD, April 21: The Securities and Exchange Commission of Pakistan (SECP) has imposed a fine of Rs20,000 on M/s Saadi Cement Limited, a listed company, and its chief executive for failure to transfer its shares to a bona fide purchaser.

The purchaser of the shares, who is also a member of the Karachi Stock Exchange, filed a complaint against the said company with the SECP.

Upon examination of the case, according to SECP press release, it was noticed that the company had also approached the Sindh High Court in the matter. The latter had ordered the company to transfer the shares to the bona fide purchaser.

The company challenged the court’s order in an appeal which was, however, dismissed by a division bench of the Sindh Court. Instead of complying with the court’s verdict, the company formed a commission of enquiry to determine the bona fides of the purchaser. But the enquiry commission failed to submit its report within the stipulated period.

While penalizing the company and its chief executive for the alleged violations, the SECP also directed the company to transfer shares in favour of the complainant within five days of the re-lodgement of the shares with the company.