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Securities and Exchange Ordinance (XVII of 1969)--- ----Ss. 6 & 22---Brokers and Agents Registration Rules, 2001, R.8---Stock Exchange Members (Inspection of Books and Record) Rules, 2001, Rr.3, 4 & 7---Failure of company/broker to maintain segregation of clients' assets---Involvement of company in imposition of late payment charges to its clients and other irregularities---Inspection report, submitted by duly constituted Inspection Team, had revealed that the company had failed to maintain segregation of client's assets; that company was involved in imposition of late payment charges to its clients; that broker company did not have improve "Know Your Customers (KYC)"; and that failed to maintain pre-trade and post-trade margins---Broker company was expected to maintain a single bank account for maintaining segregation of clients' assets; and clients' funds should be deposited on the same bank account---Broker by not maintaining proper segregation of clients' assets, was prima facie in violation of the requirements as laid down in the Stock Exchange Rule Book---Violation of the Rules and Regulations being a serious matter, Commission, in exercise of power under S.22 of Securities and Exchange Ordinance, 1969, imposed on the company a penalty of Rs.50,000, with directions to comply with Securities and Exchange Rules, 1971; ensure proper segregation of clients' assets and maintain a separate bank account for the clients' funds; provide Bank statement of the bank account; and immediately stop imposing late payment charges. ORDER IMRAN INAYAT BUTT, DIRECTOR/HOD (MSRD).---This Order shall dispose of the proceedings initiated through Show Cause Notice bearing No. 1(32) SMD/MSRD/C&IW/2013 dated July 24, 2014 ("SCN") served to Elixir Securities Pakistan (Private) Limited ("Respondent"), Trading Right Entitlement Certificate Holder/Broker of the Karachi Stock Exchange Limited ("KSE") by the Securities and Exchange Commission of Pakistan ("Commission") under Section 22 of the Securities and Exchange Ordinance, 1969 ("Ordinance") read with Rule 8 of the Brokers and Agents Registration Rules, 2001 ("Brokers Rules"). 2. Brief facts of the case are that the…

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