SECP action against non-compliant market participants

ISLAMABAD - The development of transparent and efficient securities market is one of the prime objectives of the SECP. Accordingly, Securities Market Division of the SECP took enforcement actions and penalised 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 Rs 500,000 was imposed on KASB Securities Limited primarily for failure to maintain segregation of clients’ assets by the brokerage house. Moreover, apenalty 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 penalised under Section 224 (4) of the Companies Ordinance 1984.
During the month, 3 complaints pertaining to listed companies were also resolved

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