Law: Brokers and Agents Registration Rules, 2001

Section: 5

Brokers and Agents Registration Rules, 2001---Rr. 5 & 7---Securities and Exchange Commission of Pakistan Act (XLII of 1997), Ss. 22 & 23---Renewal of certificate of registration as a broker---Detailed scrutiny of information/documents attached by the company with its application for the purpose had revealed that the company was a wholly owned subsidiary of an Investment Bank---Company had reported change in its shareholding structure and accordingly filed return i.e. "Form A"---Bank filed an application with competent Authority for approval of sale of its shareholding to another company---Prima facie, it appeared that company furnished information along with its application for renewal of certificate of registration, which it had reasonable cause to believe to be false and incorrect---Authorized representative of the company had stated that the company was not aware of the pendency of the Bank's application for sale of the company with competent Authority---Company before recording the change in its register of members and subsequently reporting the same to Company Registration Office through 'Form-A' should have known the requirement of Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 regarding prior approval of the Commission before divestment by a shareholder which was a Non-Banking and Finance Company, which was also holding company of the applicant company---Since the application filed by the Bank for sale of company's shares under Non-Banking and Finance Companies (Establishment and Regulations) Rules, 2003, had been refused by the competent Authority, sale/transfer of shareholding of the company as reported to the Commission, was unauthorized---Company having been established that same in its application for renewal of certificate of registration, had provided false and incorrect information, had failed to fulfil the eligibility requirements for renewal of the certificate of registration---Renewal of certificate of registration was also not in the interest of investors and stock market---Application of the company for renewal of certificate of registration as a "broker" was refused, in circumstances. ORDER HASNAT AHMAD,…

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