Law: Securities and Exchange Ordinance, 1969

Section: 6

Securities and Exchange Ordinance (XVII of 1969)--Ss. 6, 18 & 22---Stock Exchange Members (Inspection of Books and Record) Rules, 2001, Rr. 3, 4 & 7---Securities and Exchange Rules, 1971, Rr. 3, 5, 7, 8 & Third Schedule---Deficiencies in calculation of Net Capital Balance (NCB)---Securities and Exchange Commission, ordered an inspection of the books and records required to be maintained by the company---Report submitted by Inspection team highlighted major deficiencies in the calculation of Net Capital Balance of the company---Record had shown that, if Net Capital Balance was calculated in strict compliance with the requirements of Securities and Exchange Rules, 1971, same would have been in negative thereby implying that the company by submission of false Net Capital Balance had not only attained the certificate of registration as broker, but also much higher trading exposure thereby increasing the systemic risk in the market---Net Capital Balance as calculated by the company was not in accordance with Third Schedule of Securities and Exchange Rules, 1971 and company, by submission of overstated Net Capital Balance had submitted statement and given information, which it had reasonable cause to believe to be false or incorrect in material particular in violation of S.18 of Securities and Exchange Ordinance, 1969---Violation of Ordinance, Rules and Regulations, was a serious matter---In view of regulatory violations, in exercise of the powers under S.22 of the Securities and Exchange Ordinance, 1969, the company was directed to deposit a sum of Rs.500,000 (Rupees Five Hundred Thousand) to the Commission by way of penalty---Company was further directed to ensure full compliance with the Ordinance, rules, regulations and directives of the Commission in future. ORDER HASNAT AHMAD, DIRECTOR (MSCID).---This Order shall dispose of the proceedings initiated through a Show Cause Notice No.4/BRK-176/SE/SMD/2004 dated May 11, 2012 ("the SCN") issued to Messrs First National Equities Limited ("the Respondent"), under section 22 of the Securities and Exchange Ordinance, 1969 ("the Ordinance"). 2. Brief facts of the case are that the Respondent is a member of the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492