Law:

Section:

Securities and Exchange Ordinance (XVII of 1969)--- ----Ss. 15-A to 15-E---Brokers and Agents Registration Rules, 2001, R.8, Third schedule---Securities and Exchange Commission of Pakistan Act (XLII of 1997), S.33---Insider Trading---Broker company purchased shares on behalf of a company, in its proprietary account before the opening of trading account/CDC sub-account and started buying of shares on behalf of said company, two days prior to receipt of payment---Show-cause notice was issued to the broker company for alleged involvement in insider trading and violation of the Code of Conduct provided in Third Schedule of the Brokers and Agents Registration Rules 2001---Alleged insider trading was not established, and broker company was exonerated, but penalty was imposed on account of procedural lapses in compliance of Third Schedule of the Brokers and Agents Registration Rules, 2001---Act of broker company to purchase shares of, in its own account was solely to facilitate the said company and broker company had not drawn any consideration/gain while transferring the shares to the company's sub-account---Violation of Brokers and Agents Registration Rules, 2001, though had been established, but taking lenient view, penalty imposed on the broker company was converted into stern warning, that in case of similar non-compliance in future, strict action would be taken against the broker company. THIS ORDER PASSED BY: ZAFAR ABDULLAH, COMMISSIONER (SCD) 1. This order shall dispose of Appeal No.09 of 2016 filed under section 33 of the Securities and Exchange Commission of Pakistan Act, 1997 against the order dated 01/04/16 (the Impugned Order) passed by the Respondent. 2. Brief facts of the case are that the Appellant received a request from CUSP Pakistan Limited (CUSP) on 31/03/15 for opening of trading account and an order for purchase of 9 million shares of Byco Petroleum Pakistan Limited (Byco). The Appellant purchased 4,871,000 shares of Byco in its proprietary account and immediately after completing the said purchase, 4,871,000 shares were transferred to CUSP sub-account at almost actual cost through trades executed on Negotiated Deal Market. 3. In view 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