| Case ID |
37680bca-6f50-4670-8576-b073abde8bb2 |
| Body |
View case body. Login to View |
| Case Number |
|
| Decision Date |
Apr 23, 2009 |
| Hearing Date |
Mar 20, 2009 |
| Decision |
The Securities and Exchange Commission of Pakistan issued a decision on April 23, 2009, imposing a penalty of Rs. 50,000 on Maha Securities (Pvt.) Ltd. for executing Blank Sales, which are sales without pre-existing interest in the shares. The decision was based on the violation of the Securities and Exchange Ordinance, 1969, and the Brokers and Agents Registration Rules, 2001. The commission noted that the respondent's client sold shares without having owned them, which constituted a serious violation of regulations. The company admitted its mistake and was directed to ensure compliance with all rules and regulations in the future to avoid punitive actions. |
| Summary |
This case revolves around the Securities and Exchange Commission of Pakistan's decision regarding Maha Securities (Pvt.) Ltd. for engaging in Blank Sales, which are prohibited under the Securities and Exchange Ordinance and Brokers and Agents Registration Rules. The Commission's findings indicated that the client of Maha Securities sold shares without any ownership or pre-existing interest, which is a clear violation of trading regulations. The case highlighted the importance of compliance in the securities market and the responsibilities of brokerage firms to ensure that all trades are executed lawfully. The decision serves as a warning to other firms about the consequences of regulatory violations and emphasizes the need for robust compliance measures to prevent such occurrences in the future. |
| Court |
Securities and Exchange Commission of Pakistan
|
| Entities Involved |
Securities and Exchange Commission of Pakistan,
Maha Securities (Pvt.) Ltd.
|
| Judges |
Imran Inayat Butt
|
| Lawyers |
Muhammad Ali Lashari
|
| Petitioners |
Not available
|
| Respondents |
Maha Securities (Pvt.) Ltd.
|
| Citations |
2009 SLD 1887,
2009 CLD 1051
|
| Other Citations |
Not available
|
| Laws Involved |
Securities and Exchange Ordinance, 1969,
Brokers and Agents Registration Rules, 2001
|
| Sections |
22,
4,
8
|