| Case ID |
057b875e-ba87-4afd-b903-3042f5770e0d |
| Body |
View case body. Login to View |
| Case Number |
Show Cause Notice No.4 (BRL-53) SE/SMD/2001 |
| Decision Date |
Mar 07, 2012 |
| Hearing Date |
Feb 21, 2012 |
| Decision |
The Securities and Exchange Commission of Pakistan found that Wasi Securities (SMC-Pvt.) Ltd. failed to provide required information during an inquiry regarding numerous complaints about unlawful withdrawal of shares and non-compliance with an arbiter's award. As a result, a penalty was imposed, amounting to Rs. 3 million on the company and Rs. 2 million on its director for violations of the Securities and Exchange Ordinance, 1969. The decision highlights the importance of compliance with regulatory requirements and the consequences of failing to cooperate in inquiries. |
| Summary |
This case revolves around the inquiry conducted by the Securities and Exchange Commission of Pakistan (SECP) into the operations of Wasi Securities (SMC-Pvt.) Ltd., following multiple complaints regarding the company's unlawful withdrawal of shares from client accounts. The inquiry revealed significant discrepancies in the company's financial dealings, including the failure to honor an arbitration award and the non-compliance with regulatory requests. Despite several opportunities to present required documentation and cooperate with the inquiry officers, the company and its director, Mr. Wasi Ullah Khan, repeatedly failed to comply, citing a pending winding-up petition as a reason for non-cooperation. Ultimately, the SECP imposed a substantial financial penalty on the company and its director for their deliberate failure to provide necessary information. This case underscores the critical importance of transparency and regulatory compliance in the securities industry, as well as the potential legal repercussions of failing to adhere to established laws and regulations. Keywords: Securities and Exchange Commission, compliance, regulatory inquiry, financial penalty, Lahore Stock Exchange. |
| Court |
Securities and Exchange Commission of Pakistan
|
| Entities Involved |
Securities and Exchange Commission of Pakistan,
Lahore Stock Exchange,
Central Depository Company
|
| Judges |
Not available
|
| Lawyers |
Not available
|
| Petitioners |
Not available
|
| Respondents |
Wasi Securities (SMC-Pvt.) Ltd.,
Mr. Wasi Ullah Khan
|
| Citations |
2012 SLD 1276 = 2012 CLD 1082
|
| Other Citations |
Not available
|
| Laws Involved |
Securities and Exchange Ordinance, 1969,
Securities and Exchange Commission of Pakistan Act, 1997
|
| Sections |
21,
22,
29
|