Law: Securities and Exchange Commission of Pakistan Act, (XLII of 1997)

Section: 20

Securities and Exchange Commission of Pakistan Act (XLII of 1997)--Ss. 20 & 33-Rejection of complaint---Appeal---Appellant in his complaint had alleged that his shares had been sold by respondent (broker) without his authority; that his shares were sold too early in the morning within 5 minutes of opening of market due to which he had suffered a loss and that all his shares were not kept in 'Badla' as instructed by him---Validity---Appellant had not denied that there was debit balance in his account and appellant could not point out any legal bar on the respondent for selling shares of appellant to clear his dues---Account Opening Form had clearly authorized the broker to sell shares to clear his dues---Respondent (broker) had stated that he waited all day before selling some of the shares to settle the position---Appellant had himself admitted that he did not visit the brokerage house of respondent that very day---Contention of appellant that his shares were sold too early in the morning thus could not be accepted---Stock trading was a risky business where price of shares keeps changing all the day long and it was quite possible that price of shares belonging to appellant could have fallen during the day---No merit was found in the plea that shares were sold at the wrong time---Respondent (broker) had given a valid reason for not having kept all shares of appellant in 'Badla'---If there was not enough security to secure 'Badla' position of appellant, respondent could not have been expected to follow instructions given by appellant in that respect. ORDER 1. This order will dispose off the present appeal No. 5 of 2005 filed under section 33 of the Securities and Exchange Commission of Pakistan Act, 1997 by Honorary Capt. (Retd.) Noor Ahmed (the 'appellant') against the order dated 18-3-2005 ('Impugned Order') passed by Mr. Aly Osman, Joint Director (Securities Market Division). 2. Brief facts of the case are that the appellant had filed a complaint dated 23-10-2003 with the Commission against Mr. Hameed Shahid, member of the Islamabad Stock Exchange (G) Ltd. (respondent No.2) herein. In his complaint, the appellant had alleged that he was holding certain…

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