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

Section: 33

Securities and Exchange Commission of Pakistan Act (XLII of 1997)--S.33 Securities and Exchange Commission Ordinance (XVII of 1969), S.22(I)(c) Securities and Exchange Rules, 1971, Rr. 4(4) & 8(g) Investment of money Imposition of fine Appeal to Appellate Bench Appellant had contended that she had invested her money with the respondent Company for `Badla' investment through Branch Manager of Company and not for trading activities Appellant had alleged that the manager of Company had enticed appellant to invest money and he promised her fixed rate of return of her investment Director (Security Market) after providing opportunity of personal hearing to parties, rejected plea of appellant regarding `Badla' investment and promise of guaranteed profits by Manager of the respondent¬-Company Director, however, imposed fine on respondent--Company under S.22(1)(c) of Securities and Exchange Commission Ordinance, 1969 for violating R.4(4) read with R.8(g) of Securities and Exchange Rules, 1971 for not providing written confirmation of transaction to investor within 24 hours Being dissatisfied with findings of Director, both parties had filed appeals No document was on record which could support claim of appellant/ investor for `Badla' financing and not for trading in securities ¬Ledger statement and purchase and sales bills pertaining to appellant's account had shown that she was actively trading in securities through her account Though it was possible that signatures of appellant were obtained on a blank account opening form, but responsibility of due diligence lay with the customer herself Appellant had admitted that money was given to Manager after she signed the form which form was clearly showing that account which was to be opened was for trading purposes and not for fixed return investment Plea of appellant was rightly rejected by Director Fine was also rightly imposed on the respondent Company for not providing written confirmation of transaction to appellant/ investor within 24 hours, because law required that written confirmation must be provided to the customers Orders of Director could not be interfered with in appeal. ORDER The appellants mentioned above…

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