KARACHI: The Securities Market Division of the Securities & Exchange Commission of Pakistan (SECP) has detected 22 cases of violation of laws, including insider trading and imposed penalties on the stock exchange members and other market stakeholders, said a statement issued on Monday.
During the last one year, the Securities Market Division had detected 22 cases of insider trading, price manipulation, short- and blank-selling, wash trades, broker misconduct and non-compliance of the listing regulations, it said.
These directives were issued, following hearings after which the commission took action against the members of the stock exchanges and other market stakeholders under the Securities & Exchange Ordinance, 1969 and Brokers & Agents Registration Rules, 2001.
Moreover, 44 members of the Karachi Stock Exchange and six members of the Lahore Stock Exchange were issued warning letters for possible violations. Two banks were also issued warning letters for non-compliance of the securities laws, said the statement.
In addition, a stock exchange was also penalised for violation of the Securities & Exchange Ordinance, 1969.
The commission suspended the registration of five members of the Karachi bourse on June 26, 2009 due to unresolved investors' complaints. Subsequently, to ascertain the quantum of these complaints and other related issues, the commission initiated an inquiry against these brokerage houses under Section 21 of the Securities & Exchange Ordinance, 1969, it said.
The inquiries were conducted by joint teams, comprising officers of the commission, Karachi Stock Exchange and the Central Depository Company of Pakistan.
Based on the findings of these inquiry reports, the commission has initiated legal action under the relevant provisions of the laws against the persons who were involved in prohibitive activities, it said.
Moreover, in the public interest, at large, and in view of the large number of investorsà complaints, mainly pertaining to the alleged non-transfer of shares and non-payment of funds, the inquiries have also been initiated under Section 21 of the Securities & Exchange Ordinance, 1969 against the four expelled, defaulter brokerage houses of the Karachi Stock Exchange during the first half of 2010.
During the period, 26 cases of possible violations of Section 224 of the Companies Ordinance, 1984 were detected and processed with respect to tenderable gain, the report said, adding that the gain was tendered to the issuers in three cases and to the commission in four cases.
The directives were passed in five cases after due process and show-cause notices have been served in nine cases, it added.
Source The News
No comments:
Post a Comment