| Case ID |
179b5fe7-062d-4e09-8cb9-12cf79de54f9 |
| Body |
View case body. Login to View |
| Case Number |
Appeal No.5 of 2005 |
| Decision Date |
Jul 06, 2005 |
| Hearing Date |
Jun 29, 2005 |
| Decision |
The appeal filed by Honorary Capt. (Retd.) Noor Ahmed against the order of the Joint Director (Securities Market Division) was dismissed. The appellant claimed that his shares were sold without his authority and that they were sold too early in the morning, which resulted in a financial loss. However, it was established that the appellant had a debit balance in his account and had authorized the broker to sell shares to clear these dues. The broker had made attempts to contact the appellant regarding the situation of his account but received no response. The decision to sell the shares was made after waiting all day, and the timing of the sale was deemed reasonable given that stock trading is inherently risky and prices fluctuate throughout the day. Therefore, the appeal lacked merit, and the impugned order was upheld. |
| Summary |
The case revolves around the appeal by Honorary Capt. (Retd.) Noor Ahmed against an order from the Securities and Exchange Commission of Pakistan regarding the sale of his shares by a broker without his authority. The appellant alleged that his shares were sold prematurely, resulting in a financial loss, and that he had instructed the broker to keep his shares in 'Badla'. The Commission found that the appellant had a debit balance in his account and had authorized the broker to sell shares to clear dues. Despite the appellant's claims, the evidence indicated that the broker had made attempts to communicate with him and sold the shares after a reasonable waiting period. The appeal was dismissed on the grounds that the broker acted within the legal framework provided by the account opening form. This case highlights the importance of understanding the terms of brokerage agreements and the inherent risks in stock trading. |
| Court |
Securities and Exchange Commission of Pakistan
|
| Entities Involved |
Securities and Exchange Commission of Pakistan,
Islamabad Stock Exchange
|
| Judges |
SALMAN ALI SHAIKH,
ETRAT H. RIZVI
|
| Lawyers |
Murtaza Abbas
|
| Petitioners |
Honorary Capt. (Retd.) Noor Ahmed
|
| Respondents |
Aly Osman,
Inter Asia Leasing Company Limited,
Murtaza Abbas
|
| Citations |
2006 SLD 326 = 2006 CLD 304
|
| Other Citations |
Not available
|
| Laws Involved |
Securities and Exchange Commission of Pakistan Act, 1997
|
| Sections |
20,
33
|