| Citation(s) |
|---|
| 2020 SLG 2477 2020 SLD 2477 2020 CLD 1384 |
Securities and Exchange Commission of Pakistan
Appeal No. 59 of 2019, decided on 3rd February, 2020, Date of hearing: 2nd January, 2020.
FARRUKH H. SABZWARI, COMMISSIONER (SCD, AML), SHAUKAT HUSSAIN, COMMISSIONER (CCD, INSURANCE)
Ali Nanji, CEO, Din Capital Limited and Muhammad Ghayasuddin, Director, Din Capital Limited for Appellant. Osman Syed, Joint Director (Adjudication-1), Muhammad Faisal, Management Executive (Adjudication-I) and Ms. Mehwish Naveed, Management Executive (A
Appeal No. 59 of 2019, decided on 3rd February, 2020, Date of hearing: 2nd January, 2020.
FARRUKH H. SABZWARI, COMMISSIONER (SCD, AML), SHAUKAT HUSSAIN, COMMISSIONER (CCD, INSURANCE)
Ali Nanji, CEO, Din Capital Limited and Muhammad Ghayasuddin, Director, Din Capital Limited for Appellant. Osman Syed, Joint Director (Adjudication-1), Muhammad Faisal, Management Executive (Adjudication-I) and Ms. Mehwish Naveed, Management Executive (A
MESSRS DIN CAPITAL LIMITED
VS
COMMISSIONER (SECURITIES MARKET DIVISION), SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN
Law: Securities Act, 2015
Section: 150
Securities Act (III of 2015)-----S. 150- ORDER 1. This Order is passed in the matter of Appeal No. 59 of 2019 filed under section 33 of the Securities and Exchange Commission of Pakistan Act, 1997 (SECP Act) against the Order dated 19/06/19 (the Impugned Order) passed by Commissioner, Securities Market Division (the Respondent). 2. The brief facts of the case are that Din Capital Limited (the Appellant) is a Trading Rights Entitlement Certificate holder of the Pakistan Stock Exchange Limited (the PSX) and licensed as a securities broker under the Securities Act, 2015 (the Securities Act). The Commission vide its Order dated 17/11/17 (Order of the Commission) suspended the license of the Appellant as a securities broker until the Appellant achieved full compliance of the regulatory violations highlighted in the show cause notice dated 05/10/17 issued by the Securities and Exchange Commission of Pakistan (the Commission). Subsequently, investigation of the Appellant was conducted under section 139 of the Securities Act to reassess the compliance status of the Appellant. The said investigation, inter alia, revealed the following: i. The funds received from the National Clearing Company of Pakistan (the NCCPL) on account of customer trades were not credited to the bank account held for maintaining client funds. The same is evident from the table below: Date Funds received/ (paid) on account of settlement from/to NCCPL (Amount in Rupees) Funds (transferred)/ received to/from client bank account (Amount in Rupees) Funds not transferred to client bank account (Amount in Rupees) Cumulative balance of funds not transferred to client bank account (Amount in Rupees) 22-Nov-17 8, 139,417 (3,000,000) 5,139,417 5,139,417 23-Nov-17 (1,795,708) 10,000,000 8,204,292 13.343,709 24-Nov-17 (160,695) 1,600,000 1,439,305 14.783,014 27-Nov-17 (201,263) - 201,263 14, 581,751 28-Nov-17 17, 251, 745 (7,000,000) 10, 251,745 24.833,496 29-Nov-17 5,193,700 (20,000,000) (14,806,300) 10,027,196 30-Nov-17 20,069,425 14,000,000 34,069,425 44.096.621 4-Dec 17 3,106,445 (19,000,000) (15,893,555) 28,203,066 5-Dec 17 (1,021,190) (23,000,000) (24,021,190) 4,181,876 6-Dec 17 2,950,073 18,000,000…
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