Law: Securities and Exchange Ordinance, 1969

Section: 6

Securities and Exchange Ordinance (XVII of 1969)---Ss. 6 & 22---Stock Exchange Members (Inspection of Books and Record) Rules, 2001, Rr. 3 & 4---Brokers and Agents Registration Rules, 2001, R.8(x)---Failure to provide requisite record---Inspection team of the Commission after inspection of records of the Brokerage company, disclosed in its inspection report that, the company despite several reminders, did not produce majority of the books and accounts, information, documents, etc. and also had not clarified in that respect to the Inspection Team---Major irregularities were observed in calculation of Net Capital Balance (NCB)---Contention of the company that provision of record was not practically possible due to law and order situation in the city, had no merit as business of the company, was in process during that period---Failure of the company to provide the record, in circumstances, was wilful---Since no arguments were made by the company in its written comments; and no clarification was given during the hearing, it stood established that Net Capital Balance (NCB) as calculated by the company was not in accordance with the Rules---Violation of the Rules and Regulations was a serious matter which empowered the Commission to even suspend the company's registration as Broker, but the Commission elected not to exercise that power---Commission in exercise of the powers under S.22 of the Securities and Exchange Ordinance, 1969; imposed on the company a penalty of Rs.300,000 with advice to the company to take immediate measures and put in place proper checks and procedures to eliminate the occurrence of such instances, in future to ensure full compliance with the Rules and Regulations and directives of the Commission---Company was also directed to fully co-operate with any enquiry or investigation carried out by the Commission in future. ORDER HASNAT AHMAD, DIRECTOR (SM).---This Order shall dispose of the proceedings initiated through Show Cause Notice No.4/BRK-121/SE/SMD/2006 dated October 12, 2012 ("the SCN") issued under section 22 of the Securities and Exchange Ordinance, 1969 ("the Ordinance") to Messrs M.R.A. Securities (Pvt.) Limited ("the…

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