| Case ID |
13b6e291-7e67-4d8a-949d-010dd9de8e7f |
| Body |
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| Case Number |
Appeal No. 103 of 2017 |
| Decision Date |
Feb 06, 2020 |
| Hearing Date |
Dec 19, 2019 |
| Decision |
The Appellate Bench reduced the monetary penalty imposed on Azee Securities (Private) Limited from Rs. 1,000,000 to Rs. 500,000, acknowledging the efforts made by the appellant to comply with the regulatory framework. The bench emphasized the importance of adhering to the Securities Act, 2015, particularly regarding the prohibition of unregulated financing and the necessity of compliance with the guidelines set forth by the Securities and Exchange Commission of Pakistan. The bench noted that while violations were established, the appellant had taken significant steps to rectify its practices, which warranted a reduction in the penalty. The decision underlines the importance of regulatory compliance in the securities industry and sets a precedent for future cases. |
| Summary |
This case revolves around the appeal filed by Azee Securities (Private) Limited against a penalty imposed by the Securities and Exchange Commission of Pakistan for violations of the Securities Act, 2015, particularly Section 150 and related regulations. The case highlights significant issues regarding the extension of credit to clients, the charging of late payment fees, and the management of client accounts. The Appellate Bench recognized the efforts made by Azee Securities to improve its compliance and reduce the violations. The decision is pivotal in illustrating the regulatory expectations from securities brokers in Pakistan, emphasizing the need for transparent and compliant financial practices. The outcome of this appeal serves as a crucial reminder for financial entities to adhere strictly to regulatory frameworks to avoid punitive measures. The bench's decision to reduce the penalty demonstrates a balanced approach to enforcement, taking into account the appellant's corrective actions. |
| Court |
Securities and Exchange Commission of Pakistan
|
| Entities Involved |
Securities and Exchange Commission of Pakistan,
Azee Securities (Private) Limited
|
| Judges |
Farrukh Hamid Sabzwari,
Shaukat Hussain
|
| Lawyers |
Abdallah Azzaam Naqvi,
Ghazi Naseem,
Osman Syed,
Sabeel Ahmed,
Mehwish Naveed
|
| Petitioners |
Azee Securities (Private) Limited
|
| Respondents |
Commissioner (SMD), SECP, Islamabad
|
| Citations |
2020 SLD 2471,
2020 CLD 1332
|
| Other Citations |
Not available
|
| Laws Involved |
Securities Act, 2015
|
| Sections |
150
|