| Case ID |
d8807bde-567f-49e5-a8ae-17affb279d27 |
| Body |
View case body. Login to View |
| Case Number |
Show Cause No.SMD-SOUTH/SCN/22/07 |
| Decision Date |
Apr 03, 2007 |
| Hearing Date |
Mar 26, 2007 |
| Decision |
In this case, the Securities and Exchange Commission of Pakistan addressed the violations committed by Asian Securities (Pvt.) Limited regarding the Brokers and Agents Registration Rules, 2001, specifically Regulation 3(b). The Commission found that the Respondent had net sale positions in future contracts that exceeded the prescribed limit of Rs. 50 million. However, after considering the lack of evidence for 'short selling' and the extenuating circumstances put forth by the Respondent, the Commission decided not to impose a penalty but rather issued a caution. The Respondent was directed to ensure full compliance with all regulations in the future to avoid any punitive action under the law. |
| Summary |
This case centers around the violation of the Brokers and Agents Registration Rules, 2001, particularly Regulation 3(b), by Asian Securities (Pvt.) Limited. The Securities and Exchange Commission of Pakistan issued a show cause notice after discovering that the Respondent had net sale positions in future contracts that exceeded the legal limit of Rs. 50 million. Throughout the proceedings, the Respondent argued that they had complied with regulations and provided necessary documentation to the Commission. However, the Commission found that the Respondent had not fulfilled the reporting requirements as stipulated in Regulation 3(b). Despite this, the Commission acknowledged the absence of evidence for 'short selling' and decided to take a lenient stance, opting for a caution rather than punitive measures. The case highlights the importance of compliance in securities trading and the regulatory framework designed to protect market integrity. |
| Court |
Securities and Exchange Commission of Pakistan
|
| Entities Involved |
Securities and Exchange Commission of Pakistan,
Asian Securities (Pvt.) Limited
|
| Judges |
Zafar Abdullah
|
| Lawyers |
Not available
|
| Petitioners |
Not available
|
| Respondents |
Asian Securities (Pvt.) Limited
|
| Citations |
2007 SLD 363,
2007 CLD 893
|
| Other Citations |
Not available
|
| Laws Involved |
Brokers and Agents Registration Rules, 2001
|
| Sections |
8,
12
|