Law: Securities and Exchange Ordinance, 1969

Section: 22

Securities and Exchange Ordinance (XVII of 1969)--S. 22---Brokers and Agents Registration Rules, 2001, R.12, Sched.III---Failure to abide by Rules---Detailed analysis of the trading data of the company indicated that its two clients had actively traded in the scrips in a manner whereby majority of their transactions matched with each other; and resulted in the price appreciation of the scrips---Date-wise trading details of the scrips, indicated that said clients while trading through the company, were the main traders during the days when the share prices witnessed an increase and it was noted that at various instances said two clients placed their bids and offers regularly at the upper limit in such a way that bids and offers matched with each other; and the scrips closed at the upper price limit of the day---Prima facie, it appeared that said clients were trading in collusion with each other in the scrips and it was evident that the company showed negligence in conduct of its business and was unable to detect/scrutinize the abnormal trading executed through its terminals---Transactions in question executed through the company, resulted in price inflation and generation of artificial volumes in the scrips and in circumstances had created false market--- Being in the business of brokers, it was mandatory on the company to execute its business with due care and skill; and to put in place proper systems and controls to ensure that it business was conducted according to the law---Company being a broker during the period under review, had failed to abide by R.12 of Brokers and Agents Registration Rules, 2001 and had violated cls. (A-1), (A-2), (A-4), (A-5) of the Sched. III of said Rules punishable under S.22 of Securities and Exchange Ordinance, 1969---In exercise of powers under S.22 of Ordinance, 1969 a penalty of Rs.10,000 was imposed on the company. ORDER IMRAN INAYAT BUTT, DIRECTOR/HOD (MSCID).---This order shall dispose of the proceedings initiated through Show Cause Notice bearing No.MISC/MSW/ SMD/1(5)2004/1471 dated January 17, 2012 ("SCN") issued by the Securities and Exchange Commission of Pakistan ("Commission") under section 22 of the Securities and…

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