Thursday, April 10, 2014
SECP takes action against KASB Securities, DJM Securities
The development of transparent and efficient securities market is one of the prime objectives of the Securities and Exchange Commission of
(SECP). Accordingly, Securities Market Division of the SECP took enforcement
actions and penalized the market participants for non-compliance with the
regulatory framework during the month of March.
Subsequent to the onsite inspections, enforcement actions were taken against three brokerage houses of the Karachi Stock Exchange Limited. A penalty of Rs500,000 was imposed on KASB Securities Limited primarily for failure to maintain segregation of clients’ assets by the brokerage house. Moreover, a penalty of Rs100,000 was imposed on DJM Securities (Private) Limited because of irregularities identified in the calculation of net capital balance. Furthermore, a warning letter was issued to Time Securities (Private) Limited in the same context.
In addition, 12 orders were passed for late filing of returns of beneficial ownership, while directors/beneficial owners of 9 listed companies were penalized under Section 224 (4) of the Companies Ordinance 1984.
During the month, 3 complaints pertaining to listed companies were also resolved.