As a part of its mandate to foster a transparent and efficient capital market and to safeguard the investors’ interest, the Securities Market Division (SMD) of the SECP played its vital role to ensure the compliance of prevalent regulatory framework by the market participants.
In this regard, the SECP took enforcement actions for non-compliance with the securities laws during the month of June.
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 penalised with an amount of Rs 300,000. 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.
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- KSE Takes Action Against Listed Companies with Iron Hand
- SECP Issues Show Cause and Warning Letters to Insurance Companies
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