Law:

Section:

(a) Securities and Exchange Commission of Pakistan Act (XLII of 1997)------- --------S. 33-------Brokers and Agents Registration Rules, 2001, Rr.8, 12 & Third Schedule, Cl.A(2)-------Securities and Exchange Ordinance (XVII of 1969), S. 22-------Discrepancies in "Standard Account Opening Form (SAOF)"-------Code of conduct-------"Standard Account Opening Form (SAOF)", provided by the appellant, contained various discrepancies-------Show-cause notice was issued to the appellant as to why action could not be taken against the appellant in pursuance of R. 8 of the Brokers and Agents Registration Rules, 2001 and S. 22 of the Securities and Exchange Ordinance, 1969-------In response to said show-cause notice, Authorized Representative of the appellant informed the Commission, that he had started reviewing all the "SAOF", to ensure compliance of the law in letter and spirit-------Representative further admitted that the observations made with regard to "SAOF" in question were valid-------Commission, dissatisfied with the response of the appellant held that appellant failed to exercise due care, skill and diligence in conduct of its business-------Appellant allowed a client to open account and trade in the market whose complete particulars were not obtained-------Appellant, had failed to follow the applicable rules and regulations by violating Cl. A(2) of Code of Conduct, set forth under Third Schedule of Brokers and Agents Registration Rules, 2001 which in turn was a violation of R.12, read with R.8 of said Rules-------Commission in exercise of the powers under S.22 of Securities and Exchange Ordinance, 1969 imposed a penalty of Rs.100,000, on appellant company with direction to appellant to ensure compliance of all rules, regulations and directives of the Commission-------Facts and circumstances had established that "SAOF" had errors, which fact was admitted by the appellant-------No mala fide was noticed and the errors in "SAOF" were inadvertent-------Appellant provided the "SAOF", when required by the Commission-------Appellant, could have rectified the error before providing the same to the Commission, but that was not done; which had again indicated that there…

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