| Case ID |
ffd8ed31-d361-420c-ac58-6b816cfcb87f |
| Body |
View case body. Login to View |
| Case Number |
Commercial Appeal No. 9 of 2004 |
| Decision Date |
May 18, 2006 |
| Hearing Date |
May 17, 2006 |
| Decision |
The Lahore High Court set aside the order of the Securities and Exchange Commission of Pakistan (SECP) regarding the de-listing of securities without providing safeguards for the protection of investors' rights. The Court emphasized that the primary aim of the Securities and Exchange Ordinance, 1969, and the creation of the SECP, is to protect investors. The SECP was required to follow the regulation for voluntary de-listing and ensure investor protection. The Court found the SECP's order improper and bad in law, as it failed to meet these requirements. The appeal was allowed, with no order as to costs. |
| Summary |
In this landmark decision by the Lahore High Court, the Court examined the procedures and regulations surrounding the voluntary de-listing of securities by the Lahore Stock Exchange. The case revolved around the refusal of the Lahore Stock Exchange to de-list a security, prompting the Securities and Exchange Commission of Pakistan (SECP) to intervene. However, the SECP's decision did not provide adequate protection for investors, which is a fundamental requirement under the Securities and Exchange Ordinance, 1969. Justice Ali Nawaz Chowhan highlighted the importance of safeguarding investor rights and ensuring compliance with regulations for voluntary de-listing. The Court ruled that the SECP must adhere to the established regulations and cannot bypass them despite having concurrent jurisdiction. The decision underscores the critical role of regulatory bodies in maintaining market integrity and protecting investor interests. This case serves as a reminder of the essential balance between regulatory power and investor protection, a theme that resonates with global securities regulation practices. |
| Court |
Lahore High Court
|
| Entities Involved |
Securities and Exchange Commission of Pakistan,
Lahore Stock Exchange
|
| Judges |
ALI NAWAZ CHOWHAN
|
| Lawyers |
Jawad Hassan,
Arif Saeed,
Khawaja Saeed-ud-Zafar,
Sohail Ahmad,
Javed Iqbal
|
| Petitioners |
Lahore Stock Exchange
|
| Respondents |
Lahore Appellate Bench S&EC
|
| Citations |
2006 SLD 392,
2006 CLD 988
|
| Other Citations |
Not available
|
| Laws Involved |
Securities and Exchange Ordinance, 1969,
Securities and Exchange Commission of Pakistan Act, 1997
|
| Sections |
9,
34
|