Law:

Section:

Securities and Exchange Ordinance (XVII of 1969)-------S.22---Brokers and Agents Registration Rules, 2001, Rr. 4 & 8---Execution of Blank Sales in violation of Regulation---Imposition of penalty---Record had shown that client of the company t which was member of Stock Exchange and was registered with the Securities and Exchange Commission of Pakistan sold shares when at time of said sale, said client did not have any pre-existing interest in those shares---Company admitted its mistake and stated that all said trades were erroneously executed by one of its traders---Blank sales could mean a sale by a party that did not own shares or the sale did not constitute a sale with pre-existing interest or was a sale by a party that had not entered into contractual borrowing agreement to meet delivery requirements---Sale by the client of the company without pre-existing interest fell within the ambit of 'Blank Sale' which was prohibited in terms of Regulation 4 of Brokers and Agents Registration Rules, 2001---Company by executing Blank Sales in its client's account had violated the Regulations which, in turn, was a violation of Regln. (iii) of Brokers and Agents Registration Rules, 2001---Such violation of the Rules and Regulations was a serious matter which would entitle the Commission to suspend the company's membership, however, in exercise of the powers under R.8(b) of the Brokers and Agents Registration Rules, 2001, penalty of Rs.50,000 was imposed on the company with direction to the company to ensure that full compliance he made of all the rules, regulations and directions of the Commission in future for avoiding any punitive action under the law. ORDER IMRAN INAYAT BUTT, DIRECTOR (SECURITIES MARKET DIVISION).---This order shall dispose of the proceedings initiated through Show-cause notice bearing No. 1(13) BS/LSE/MSW/SMD/2008/2004 dated March 9, 2009 ("the SCN") issued to MAI-IA Securities (Pvt.) Limited )"the Respondent"), Member of the Lahore Stock Exchange (Guarantee) Limited ("LSE") by the Securities and Exchange Commission of Pakistan ("the Commission") under section 22 of the Securities and Exchange Ordinance, 1969 ("the Ordinance") and under Rule 8 of…

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