Law: Brokers and Agents Registration Rules, 2001

Section: 8

Brokers and Agents Registration Rules, 2001--R.8 & Sched.---Purchasing of shares by the company in its Proprietary Accounts in violation of rules and regulations--Imposition of penalty---Company had executed client's trades in its Proprietary Account through different Stock Exchange members---Execution of said trades had shown that company had failed to maintain high standards of integrity, promptitude and fairness in conduct of its business---Company had further failed to comply with specific directives issued by the Commission and the stock exchange and it was the responsibility of the company to keep itself well-informed about applicable rules and regulations to avoid any violation of the same---Company, by executing the trades in question had violated clauses A1, A5 and D1 (2) of the Code of Conduct contained in the Third Schedule of the Brokers and Agents Registration Rules, 2001---Violation of the rules and regulations was a very serious matter, however, in view of fact that representatives of the company had assured that in future they would be more careful, a fine of Rs.50,000 (Fifty Thousand) was imposed on the company in exercise of power under R.8(b) of the Brokers and Agents Registration Rules, 2001. ORDER IMRAN INAYAT BUTT, DIRECTOR (SMD).---This order shall dispose of the proceedings initiated through show-cause notice ("the SCN") bearing No.l(03)/Wash/LSE/MSW/ SMD/2009/04 dated May 8, 2009 issued to Guardian Securities (Private) Limited ("the Respondent"), Member of the Landre Stock Exchange (Guarantee) Limited ("LSE"), by the Securities and Exchange Commission of Pakistan ("the Commission") under the Brokers and Agents Registration Rules, 2001, ("the Broker Rules"). 2. The brief facts of the case are that the respondent is a member of LSE and is registered with the Commission under the Broker Rules. After examination of the Karachi Automated Trading System ("KATS") data for the month of February, 2009 it has been observed that the respondent, in its Proprietary Account brought 586,000 shares and sold 412,500 shares of Colony Mills Limited ("CML") through three different Members of Karachi Stock Exchange (Guarantee) Limited ("KSE"). The…

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