Law: Securities Act, 2015

Section: III,64(2),65(2)

Law: Securities Brokers (Licensing and Operations) Regulations, 2016

Section: 60(2)(k)

Securities Act (III of 2015)-------Ss. 64 (2) & 65 (2)---Securities Brokers (Licensing and Operations) Regulations, 2016, Cl. 60(2)(k)---Brokerage House---Terms of license, violations of---Brokerage House accepting deposits from its customers on pre-determined rate of return---Legality---Appellant (Brokerage House) assailed order passed by the Appellate Bench of Securities and Exchange Commission of Pakistan---Submission of the appellant was that the transactions entered into by it pre-date the promulgation of Securities Brokers (Licensing and Operations) Regulations, 2016 ('the Regulations 2016') and as such it could not be penalized for violation thereof--Validity---The fact that the appellant sought deposits from its customers on predetermined rate of return was not in dispute---It was also an admitted fact that the licence of brokerage granted to the appellant did not allow it to indulge in receiving such deposits from its customers---The activities which the appellant could lawfully pursue were mentioned in the certificate of registration as broker---Section 64(2) of the Securities Act, 2015, clearly stipulates that the licence shall specify the regulated activities that a broker is committed to undertake---It was not in dispute that the appellant accepted deposits from its customers on pre-determined rate of return which activity was not mentioned in the brokerage certificate issued to it--Thus, the appellant violated the terms of its brokerage certificate and was in violation of Ss. 64(2) & 65(2) of Securities Act, 2015---The fact that the Regulations, 2016 were introduced subsequently and had no retrospective application to the activities the appellant indulged in was beside the point--Appellant , admittedly, was in violation of the terms of its brokerage license and Ss. 64(2) & 65(2) of the Securities Act, 2015 thus, the impugned order was lawfully passed against it---No interference by the High Court in the order passed by the Appellate Bench of Securities and Exchange Commission of Pakistan was made out---Appeal, filed by Brokerage House, being merit-less was dismissed.ORDERSHAMS MEHMOOD MIRZA, J.---This appeal is filed under section 34…