| Citation(s) |
|---|
| 2017 SLG 1897 2017 SLD 1897 2017 CLD 1073 |
Securities and Exchange Commission of Pakistan
Appeal No. 37 of 2014, decision Date : 05-03-2015, hearing Date : 09-01-2015
TAHIR MAHMOOD, COMMISSIONER (CLD), FIDA HUSSAIN SAMOO, COMMISSIONER (INSURANCE)
M. Hanif Razzak, FCA and Naushad Chamdia for Appellant. Mian M. Imran, Deputy Director and Ms. Najia Ubaid, Deputy Director for
Respondent.
Appeal No. 37 of 2014, decision Date : 05-03-2015, hearing Date : 09-01-2015
TAHIR MAHMOOD, COMMISSIONER (CLD), FIDA HUSSAIN SAMOO, COMMISSIONER (INSURANCE)
M. Hanif Razzak, FCA and Naushad Chamdia for Appellant. Mian M. Imran, Deputy Director and Ms. Najia Ubaid, Deputy Director for
Respondent.
STANDARD CAPITAL SECURITIES (PVT.) LIMITED
VS
DIRECTOR/HOD (MSRD)
Law: Securities and Exchange Ordinance, 1969
Section: 6,6(1),22
Law: Brokers and Agents Registration Rules, 2001
Section: 8
Law: Stock Exchange Members (Inspection of Books and Record) Rules, 2001
Section: 3,4,7
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---Brokers and Agents Registration Rules, 2001, R.8---Irregularities in calculation of "Net Capital Balance (NCB)"---Inspection Report, submitted by Inspection team showed irregularities in calculation of 'Net Capital Balance (NCB)'; that NCB certificate was not in accordance with Third Schedule of the Securities and Exchange Rules, 1971; that the Company did not have 'Know Your Customer' (KYC) and "Customer Due Diligence (CDD)" Policy duly approved from the Board of Directors of the Company; that the company failed to maintain segregations of clients' assets; that company failed to maintain proper books of accounts, and was involved in imposing late payment charges to its clients---Commission, dissatisfied with the response of the company to the show-cause notice, in exercise of the powers under S.22 of the Securities and Exchange Ordinance, 1969, imposed penalty of Rs.100,000---Company was further directed to comply with rules and guidelines in letter and spirit and ensure segregation of clients' assets---Effort, however, had been made by the company to improve its system---Failure of the company to maintain segregation of clients' assets was harmful and detrimental for the interest of the clients, market integrity and transparency, but considering that the company had made an effort to improve its existing system, taking a lenient view penalty imposed was set aside with direction to the company to ensure strict compliance with law and the Rules in letter and spirit THIS ORDER PASSED BY: TAHIR MAHMOOD, COMMISSIONER (CLD) 1. This order shall dispose of appeal No.37 of 2014 filed under section 33 of the Securities and Exchange Commission of Pakistan (the "Commission") Act, 1997 ("SECP Act") against the order (the "Impugned Order") dated 07/07/14 passed by the Respondent. 2. The brief facts of the case are that the Commission in exercise of its powers under section 6(1) of the Securities and Exchange Ordinance, 1969 ("Ordinance") read with Rule 3 and Rule…
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