Law: Brokers and Agents Registration Rules, 2001

Section: 4

Brokers and Agents Registration Rules, 2001---Rr. 4, 8, 12 & Sched.---Non-transfer of shares---Security and Exchange Commission, over the past five months had received complaints against the company relating to the alleged non-transfer of shares to/from the complainants' CDA accounts and non-payment of funds, which had been attributed to the unauthorized pledge/transfer of the securities by the company--In addition to the complaints, Karachi Stock Exchange also reported a substantial number of investor complaints/claims filed against the company during said period---Company had admitted the non transfer of shares in the clients' respective CDA accounts and committed timelines for the transfer of those shares---No concrete steps were taken by the company for the resolution of pending investor's complaints/claims---Company had not only misused the securities of its clients by way of unauthorized pledge/transfer, but also had failed to resolve outstanding investor complaints/claims despite a lapse of oven five months---Such conduct of the company was a clear violation of R.12 of Brokers and Agents Registration Rules, 2001 Which made it mandatory upon a broker holding certificate of registration under the said Rules to abide by the Code of Conduct strictly and maintain high standards of integrity, promptitude and fairness in the conduct of all his business as stipulated in said Rules, 2001---Company had clearly neglected and failed to comply with requirement of R.4 or 12 of Brokers and Agents Registration Rules, 2001 and various instructions issued by the Commission from time to time---Violation of Rules and Regulations and non-compliance with the instructions of the Commission was a serious matter which warranted stern action---Continuation of the company in the securities business, was not in the interest of the investors---In public interest for the protection of the investors and to preserve capital market integrity, in exercise of powers conferred by R.8 of the Brokers and Agents Registration Rules, 2001, suspension of registration of the company was ordered till claims against the company in the light of the investor complaints could be ascertained and…

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