Law:

Section:

Brokers and Agents Registration Rules, 2001--- ----R. 8---Central Depositories Act (XIX of 1997), Ss. 24 & 28---Transferring of shares from sub-account to House account---Imposition of charges against account---Complaint against the broker company was, that it received the dividend on shares owned by the complainant, and subsequently imposed unjustified charges against account of the complainant on demand of said dividend; that the broker company transferred complainant's shares from his sub-account to the House Account of the complainant unauthorisedly---Imposition of charges by the broker company on the complainant's sub-account without providing any schedule, was discriminative; and not justified in the light of the Code of Conduct laid down in Third Schedule of the Brokers and Agents Registration Rules, 2001---By doing so the broker company failed to maintain high standard of integrity, promptitude and fairness in the conduct of its business---Considering the broker company's efforts and commitment to settle that matter amicably, Commission taking lenient view, no punitive action was taken under R.8(iv) of Brokers and Agents Registration Rules, 2001 and observed that caution to broker company would suffice---Broker company was directed to fully comply with all the Rules, Regulations and Directives of the Commission in future to avoid punitive action under the law---Broker company had failed to produce any valid written authority and lawful justification for transferring of complainant's shares from his sub-account to his House account---Broker company, in circumstances, moved shares of complainant in violation of S. 24 of Central Depository Act, 1997, which was serious violation---Commission, in exercise of powers under S. 28(2) of Central Depository Act, 1997 imposed a penalty of Rs. 25,000 on the broker company. ORDER HASNAT AHMAD, DIRECTOR (MSRD).---This Order shall dispose of the proceedings initiated through Hearing Notice No. 4(BRL-30)/1/2014 dated June 9, 2014 issued to Messrs S. Z. Securities (Private) Limited, Trading Right Entitlement Certificate Holder of the Lahore Stock Exchange Limited ("the Respondent") under Rule 8 of the Brokers and…

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