SECP penalizes non-compliant market participants
As a measure to restrain any manipulative or abusive market practices, the SMD has adopted a stringent approach for surveillance of the all segments of the stock market. In this regard, an order was passed against Pearl Capital Management (Pvt) Limited, a member of Karachi Stock Exchange (KSE) for execution of wash trades in its proprietary account. A penalty of Rs100,000 was imposed. Another order was passed against Sakarwala Capital Securities Limited, also a KSE member, vide which it was warned for inappropriate business conduct.
In an effort to protect the investors’ interest, an order was passed against Equity Master Securities (Pvt.) Ltd., a member of Lahore Stock Exchange for provision of financing from private sources to its clients and inability to deliver proper trade confirmation reports and was penalized with an amount of Rs300,000.
Owing to the regulatory non-compliance, a warning letter was issued to the CEO of Quice Foods Limited for violation of the KSE Listing Regulations.
In addition, 34 orders were issued under Section 224 of the 1984 Companies Ordinance to the directors/beneficial owners of listed companies namely Ansari Sugar Mills, Colony Sarhad Textile Mills, Dewan Farooq Motors Limited, IBL Health Care Limited, Ismail Industries limited, J.K Spinning Mills, Kohinoor Mills Limited, Nishat (Chunian) Limited, Pakgen Power Limited, Pakistan Synthetics Ltd, Premium Textile Mills, Ruby Textile Mills Limited, Samin Textile Limited, Shadman Cotton Mills Limited and Sitara Chemical Indutries Limited, for late filing of returns of beneficial ownership and penalties were imposed. Further, an order was issued against CEO of Quality Textile Mills Limited under 246 of the 1984 Companies Ordinance for late filing of From A. Moreover, 9 warning letters were issued to the beneficial owners/ directors of 5 listed companies for late filing of beneficial ownership returns.
The copies of the orders and warning letters are available at the SECP website.
Furthermore, as part of continuous process of the progression of the regulatory framework in line with the international practices, an amendment to the First Schedule to the 1984 Companies Ordinance was approved. Through this amendment, the Transfer Deed has been revised and option of dividend mandate has been inserted for those shareholders who wish for direct credit of their dividend into their bank accounts.