| Case ID |
394cfcdd-69ab-4e10-9ed1-26b751677ac4 |
| Body |
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| Case Number |
Appeal No. 46 of 2012 |
| Decision Date |
Jan 01, 2016 |
| Hearing Date |
Jan 01, 2016 |
| Decision |
The Commission imposed a penalty of Rs. 100,000 on H.H. Misbah Securities due to their failure to monitor short sales conducted by their client, which resulted in violations of the Securities and Exchange Ordinance and the Brokers and Agents Registration Rules. The findings highlighted that the broker engaged in 'blank sales', a practice that is prohibited under the existing regulations. Despite the broker's argument that they lacked access to client accounts, the Commission concluded that it was their responsibility to monitor all trading activities and ensure compliance with market regulations. The broker was advised to implement proper systems to prevent future violations. The appeal filed by the broker was dismissed, and they were directed to comply with all relevant rules and regulations to avoid further punitive actions. |
| Summary |
This case revolves around H.H. Misbah Securities, which was penalized by the Securities and Exchange Commission of Pakistan for engaging in prohibited trading practices known as 'blank sales'. The case highlights the importance of compliance with the Securities and Exchange Ordinance, 1969, and the Brokers and Agents Registration Rules, 2001. It emphasizes the need for brokers to maintain high standards of conduct and integrity in their operations. The decision underscores the regulatory body's role in ensuring fair market practices and protecting investor interests. As the case unfolds, it reflects on the responsibilities of brokers in monitoring client activities and adhering to established trading protocols. Keywords such as 'securities regulation', 'broker compliance', and 'market integrity' are central to understanding the implications of this case. |
| Court |
Securities and Exchange Commission of Pakistan
|
| Entities Involved |
Securities and Exchange Commission of Pakistan,
H.H. Misbah Securities
|
| Judges |
Tahir Mahmood, Commissioner (CLD),
Fida Hussain, Commissioner (Insurance)
|
| Lawyers |
|
| Petitioners |
Abdul Wahab, CEO H.H. Misbah Securities (Pvt.) Ltd.
|
| Respondents |
Adnan Ahmed, Deputy Director, SMD,
Amir Saleem, Deputy Director, SMD,
Ms. Tayyaba Nisar, Assistant Director, SMD
|
| Citations |
2016 SLD 3348,
2016 CLD 1196
|
| Other Citations |
Not available
|
| Laws Involved |
Securities and Exchange Ordinance, 1969,
Brokers and Agents Registration Rules, 2001
|
| Sections |
22,
8(iv)(b),
12
|