Law: Securities Act, 2015

Section: 150

Securities Act (III of 2015)--- ----S. 150---Securities (Leveraged Markets and Pledging) Rules, 2011, R. 34---Pakistan Stock Exchange Limited Regulations, Rglns. 4.18.1(c) 19.5---National Clearing Company of Pakistan Limited Regulations, 2015, Regln. 12.9.3--- Disciplinary action in respect of licensed person---Prohibition---Segregation of clients accounts by the broker---Maintenance of collateral account---Obligation of clearing members to collect margins from their clients---Scope, a securities broker, was imposed upon a penalty for extending credit to its clients for trading of securities; charging mark-up from its clients in the guise of late payment charges; making payments to clients who were having debit balance; its failure to recover Finance Participation Ratio (FPR); its failure to recover Mark to Market (MtM) losses in form of cash from its clients in Leveraged Market; its failure to recover margins from its clients for the trades executed in the ready market; its failure to recover MtM losses in form of cash from its clients in Future Market and failure to make additional disclosures in quarterly accounts---Validity had not denied existence of the violations as such the violations were established, however, the appellant had taken steps to reduce the continued debit balance and had significantly reduced the quantum of mark-up---Appellate Bench, keeping in view the appellants efforts to comply with the requirements of the Framework reduced the penalty---Appeal was disposed of accordingly. ORDER 1. This Order shall dispose of Appeal No. 103 of 2017 filed by the Messrs Azee Securities (Private) Limited (the Appellant) against the Order dated September 20, 2017 (the Impugned Order) passed by the Executive Director, PRPD (the Respondent) under the Securities Brokers (Licensing and Operations) Regulations, 2016 (the Regulations) read with the Securities Act, 2015 (the Act). 2. Brief facts of the case are that the Appellant is a Trading Right Entitlement Certificate holder of the Pakistan Stock Exchange (PSX), licensed as a securities broker with the Securities and Exchange Commission of Pakistan (the Commission) and a clearing member of the National…

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