Securities and Exchange Commission of Pakistan takes action against non – compliant market participants

Islamabad, April 11, 2014 (PPI-OT): The development of transparent and efficient securities market is one of the prime objectives of the Securities and Exchange Commission of Pakistan (SECP). Accordingly, Securities Market Division of the SECP took enforcement actions and penalized the market participants for non – compliance with the regulatory framework during the month of March.

Subsequent to the onsite inspections, enforcement actions were taken against three brokerage houses of the Karachi Stock Exchange Limited. A penalty of Rs500,000 was imposed on KASB Securities Limited primarily for failure to maintain segregation of clients’ assets by the brokerage house.

Moreover, a penalty of Rs100,000 was imposed on DJM Securities (Private) Limited because of irregularities identified in the calculation of net capital balance. Furthermore, a warning letter was issued to Time Securities (Private) Limit ed in the same context.

In addition, 12 orders were passed for late filing of returns of beneficial ownership, while directors/beneficial owners of 9 listed companies were penalized under Section 224 (4) of the Companies Ordinance 1984. During the mont h, 3 complaints pertaining to listed companies were also resolved.

For more information, contact:
Shakil Ahmad Chaudhary
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +9251 921 4005 or 921 4009 (Ext. 378)
Fax: +9251 920 6459
Cell: +92302 855 2254
E-mail: shakil.chaudhary@secp.gov.pk

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