Law: Securities and Exchange Ordinance, 1969

Section: 18,33

Securities and Exchange Ordinance (XVII of 1969)---S.18-A---Securities and Exchange Commission of Pakistan Act (XLII of 1997), S.33---Submission of more than one application for shares of companies offered to the public---Imposition of penalty---Appeal against---Ordinary shares of Habib Bank were offered to general public by Privatization Commission---Appellant submitted more than one application for subscription of said shares in violation of S.18-A of Securities and Exchange Ordinance, 1969---Appellant had admitted submission of multiple applications stating the reason of unawareness of the relevant provisions of law---Appellant also requested that her mistake be condoned and subscription money be refunded or shares be allotted to her---Validity---Section 18-A of Securities and Exchange Ordinance, 1969 was prone to two interpretations---First one was that money received against all applications could be confiscated, where there was more than one application while the other interpretation was that application money in excess of one application ought to be confiscated---In cases of multiple applications the application money for one application or the share (if the application was successful) should not be confiscated---Where an investor proved/established that he/she had acted in bona fide manner or that the contravention was not committed knowingly and wilfully, the subscription money for all applications ought to be returned or the person be given the shares for one application, if he/she was successful and returned the application money for the rest---In the present case appellant did not act in bona fide manner and the contravention was committed knowingly and wilfully as the instruction in that respect was clearly laid down on the form and had been extensively advertised in newspapers--Moreover, the appellant made more than one application through two accounts maintained at two different Banks---Making of two applications from two different accounts, when appellant could have submitted the application from one account, had shown that the act was done knowingly and wilfully and was attempted to defeat the provisions of law---Impugned order, however, was…

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