Law:

Section:

Securities and Exchange Ordinance (XVII of 1969)--- ----Ss. 6 & 22---Stock Exchange Members (Inspection of Books and Record) Rules, 2001, Rr.3, 4 & 7---Securities and Exchange Rules, 1971, Third Schedule---Irregularities in calculation of Net Capital Balance (N.C.B.)---Report of Inspection Team, revealed irregularities in calculation of Net Capital Balance of company---Net Capital Balance of the company, was not calculated and prepared by Chartered Accountants in accordance with Third Schedule of Securities and Exchange Rules, 1971---Company failed to apply necessary prudence in certifying its Net Capital Balance, despite having been penalized earlier for the same non-compliances---Company was responsible to ensure that figures used to calculate the Net Capital Balance, depicted completeness and accuracy, and was also expected to give a statement to the same effect in Net Capital Balance Certificate---Auditor should perceive as professional that was beyond reproach; and it should perform its functions in a fair, proficient and impartial manner---Auditing company, by not ensuring the completeness and accuracy of items, had failed to perform its responsibilities diligently---Auditing company, however, had, assured that it would comply with the applicable regulatory framework in future---Violation of the Rules and Regulations was a serious matter, Securities and Exchange Commission, taking a lenient view, imposed on the auditor company a penalty of Rs.10,000, in circumstances. ORDER IMRAN INAYAT BUTT, DIRECTOR/HOD (MSRD).---This Order shall dispose of the proceedings initiated through Show Cause Notice bearing No. 1(17) SMD/MSRD/C&IW/2013 dated July 2, 2014 ("SCN") served to Aslam Malik & Company, Chartered Accountants ("Respondent") under Section 22 of the Securities and Exchange Ordinance, 1969 ("Ordinance"). 2. Brief facts of the case are that the Securities and Exchange Commission of Pakistan ("Commission") in exercise of its powers under subsection (1) of Section 6 of the Ordinance read with Rule 3 and Rule 4 of the Stock Exchange Members (Inspection of Books and Record) Rules, 2001 ("Inspection Rules") ordered an inspection of the books and…

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