Law: Central Depository Company of Pakistan Regulations, 2002

Section: 4

(a) Central Depository Company of Pakistan Regulations, 2002--Reglns. 4 & 5---Brokers and. Agents Registration Rules, 2001, Rr. 8, 12 & Sched.---Making blank sales in violation of rules and regulations---Imposition of penalty---Regulation 4 of Central Depository Company of Pakistan Regulations, 2002, prohibited blank sales, whereas findings of the Enquiry Officer had revealed 2444 instances of blank sales during the review period---Perusal of the information submitted by the company, transpired that 434 out of 2444 instances were not blank sales as the respective customers had purchased the shares before making the sale---No valid justification or supporting documents were provided for remaining 2010 instances of blank sales and it was established that on 2010 occasions short sales had been made without meeting the requisite criteria as provided in Regln.5 of Central Depository Company of Pakistan Regulations, 2002 in terms of Rule 8 of Brokers and Agents Registration Rules, 2001---Company having violated Central Depository Company of Pakistan Regulations, 2002 attracting Rule 8 of Brokers and Agents Registration Rules, 2001, penalty of Rs.100,000 was imposed on the company. (b) Securities and Exchange Rules, 1971--- ----R.4---Brokers and Agents Registration Rules, 2001, R.8---Failure to maintain order Register---Under Rule 4(1) of Securities and Exchange Rules, 1971, all orders to buy or sell securities which a member could receive, would be entered in a chronological order in a register to be maintained in a form which would show the name and address of the persons who placed the order, name and number of the securities to be bought or sold, the nature of transaction and the limitation, if any---Findings of the Enquiry Officer had revealed that said Register was not maintained by the company during the review period---Security and Exchange Commission, however was cognizant of the practical difficulties associated with the maintenance of said order Register manually---Taking a lenient view of the matter, no punitive action was taken against the company under R.8 of Brokers and Agents Registration Rules, 2001---Caution, was considered to suffice, with…

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