As a part of its mandate to regulate the capital markets and curb unfair market practices,
the Securities Market Division of the Securities and Exchange
Commission
of Pakistan took enforcement actions against the market participants
for non-compliance to the regulatory framework during the month of
February.
An order was passed
against ex-fund manager of an asset management company under Section 15 A
of the Securities and Exchange Ordinance, 1969. Moreover, a broker of
LSE was penalized under Rule 8 of the Brokers
and Agents Registration Rules, 2001, for misstatement and failure to
provide information to the SECP. Further, show-cause notices were issued
to four brokerage houses of LSE under various provisions of the
securities laws.
In addition, three
orders and four warning letters were issued against directors/beneficial
owners of listed companies under Section 224 of the Companies
Ordinance, 1984, for late filing of returns of beneficial
ownership.
In
line with the Financial Action Task Force recommendations for
implementation of an efficient anti-money laundering/counter financing
of terrorism regime in Pakistan, amendments were
approved to the General Regulations of the Karachi Stock Exchange.
These amendments require all brokers to formulate and implement
effective know your customer and customer due diligence policies and
procedures
in accordance with the guidelines issued by the exchange, with
the prior approval of the SECP and any notices or circulars issued by
the SECP from time to time.
During the month, 2 complaints pertaining to listed companies were resolved.
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