| Case ID |
43d664fc-1afa-4864-9210-76d9e2448f8c |
| Body |
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| Case Number |
Appeal No.21 of 2004 |
| Decision Date |
Oct 19, 2004 |
| Hearing Date |
Oct 19, 2004 |
| Decision |
The appeal filed by First Capital Securities Corporation Ltd. was dismissed. The court found that the corporation failed to tender the gain made from share transactions within the specified period under section 224(2) of the Companies Ordinance, 1984. The Commission was justified in demanding the gain to be deposited as it had become part of the Commission's Fund after the lapse of six months from the date of accrual. The interpretation of the law by the appellant's counsel was found to be flawed, and the Commission's authority to initiate proceedings was upheld. The court emphasized that the gain could not be claimed by any party, including the issuer, after the prescribed period, reinforcing the principle that no party can benefit from their own wrongdoing. |
| Summary |
In this case, First Capital Securities Corporation Ltd. appealed against an order from the Securities and Exchange Commission of Pakistan regarding the tender of gains made from share transactions. The dispute centered around section 224(2) of the Companies Ordinance, which mandates the recovery of gains within a specified period. The court ruled that the Commission acted within its authority when it demanded the tender of the gains, which had not been submitted within the legally required timeframe. The decision highlighted the importance of adhering to statutory deadlines in financial transactions, particularly in the securities market. This ruling reinforces the regulatory framework governing financial transactions and the responsibilities of corporations in reporting gains to regulatory bodies. The implications of this decision are significant for entities operating in the securities market, as it underscores the necessity for compliance with legal provisions to avoid penalties. Keywords such as 'securities market compliance', 'corporate governance', and 'financial regulations' are highly relevant in this context. |
| Court |
Securities and Exchange Commission of Pakistan
|
| Entities Involved |
Securities and Exchange Commission of Pakistan,
First Capital Securities Corporation Ltd.,
World Call Communications Limited
|
| Judges |
ETRAT H. RIZVI,
ABDUL REHMAN QURESHI
|
| Lawyers |
Imtiaz Rashid Siddiqui,
Imran Inayat Butt,
Muhammad Farooq
|
| Petitioners |
First Capital Securities Corporation Ltd.
|
| Respondents |
Commissioner (Securities Market) SEC
|
| Citations |
2006 SLD 341,
2006 CLD 371
|
| Other Citations |
Not available
|
| Laws Involved |
Companies Ordinance, 1984,
Securities and Exchange Commission of Pakistan Act, 1997
|
| Sections |
224,
23(2)(d)
|