ISLAMABAD, Aug 30: The Securities and Exchange Commission of Pakistan (SECP) has penalized nine brokerage companies and firms of the Karachi Stock Exchange (KSE) for failing to maintain high levels of integrity and fairness in the conduct of their businesses and for indulging in improper conduct.

“These companies and firms were found to be engaged in or have allowed trades in the market merely for the purpose of creating a false impression of trading activity in particular scrips (wash trades), in violation of Rule 8(iv) of the Brokers and Agents Registration Rules, 2001”, stated an SECP announcement issued here on Tuesday.

These companies were issued show-cause notices, following which they were called upon for hearing. Consequently, the SECP imposed an aggregate penalty of Rs525,000 on the companies.

Details issued by the commission stated that Rs25,000 fine was imposed each on DJM Securities, M. S. Securities and Time Securities, Rs50,000 each on First National Equities, M Nadeem Abdul Ghaffar and Taurus Securities, and Rs100,000 each on Worldwide Securities, Moosani Securities and Sherman Securities.

These brokerage companies/ firms have been asked to deposit their fines, no later than 30 days from the date of issuance of the respective orders.