| Case ID |
f5d13565-a772-4fa5-bd64-93e3840230fa |
| Body |
View case body. Login to View |
| Case Number |
Show-Cause Notice No.SMD-SOUTH/SCN/122/07 |
| Decision Date |
Jan 22, 2008 |
| Hearing Date |
Nov 15, 2007 |
| Decision |
The Securities and Exchange Commission of Pakistan imposed penalties on Siddiq Moti for multiple violations of the Central Depository Company Regulations and the Central Depositories Act. The findings revealed 4,584 instances of blank sales during the review period, which were sales made without owning shares or without a contractual borrowing arrangement. A penalty of Rs.100,000 was imposed under Rule 8(b) of the Brokers Rules. Additionally, the respondent failed to open necessary sub-accounts for certain clients, leading to a penalty of Rs.25,000 under the Central Depositories Act. Other issues regarding the maintenance of records and compliance with the Code of Conduct were noted, but a caution was deemed sufficient without punitive action. |
| Summary |
This case involves the Securities and Exchange Commission of Pakistan's proceedings against Siddiq Moti, a member of the Karachi Stock Exchange. The Commission initiated an enquiry based on several alleged violations of the Central Depository Company Regulations and the Central Depositories Act. The enquiry revealed numerous instances of blank sales, where shares were sold without proper ownership or contractual arrangements. The Commission imposed penalties totaling Rs.125,000 for these violations. Additionally, the respondent's failure to establish necessary sub-accounts for clients was noted as a significant breach of the law. The case underscores the importance of regulatory compliance in the securities market and the consequences of failing to adhere to established rules and regulations. Keywords like 'Securities and Exchange Commission', 'blank sales', and 'Central Depository Regulations' are critical for understanding the regulatory landscape and the implications of non-compliance in the financial sector. |
| Court |
Securities and Exchange Commission of Pakistan
|
| Entities Involved |
Karachi Stock Exchange,
Central Depository Company of Pakistan
|
| Judges |
Zafar Abdullah
|
| Lawyers |
Not available
|
| Petitioners |
Siddiq Moti
|
| Respondents |
Siddiq Moti
|
| Citations |
2008 SLD 402,
2008 CLD 665
|
| Other Citations |
Not available
|
| Laws Involved |
Central Depository Company of Pakistan Regulations, 2002,
Central Depositories Act (XIX of 1997),
Securities and Exchange Rules, 1971,
Brokers and Agents Registration Rules, 2001
|
| Sections |
4,
2(27),
3,
28,
8(1)(a),
8,
12
|