ISLAMABAD: Inspection was done and action was taken by the Securities and Exchange Commission of Pakistan (SECP) on various participants of Karachi Stock Exchange for violating the rules.
The SECP conducted on-site inspection and fined the participants on account of regulatory non-compliances as failure to maintain segregation of clients’ assets; improper books of accounts; imposing late payment charges to clients and failure to have ‘know your customer’ and ‘customer due diligence policies, etc.
Moreover, a penalty of Rs100,000 each was imposed on Standard Capital Securities and Arif Habib Ltd; Rs50,000 each on FDM Capital Securities and Elixir Securities Pakistan and Rs25,000 each on Sunrise Capital Ltd, Friendly Securities Ltd and HP Byramji.
In the meanwhile, a warning letter in the same context was issued to SAOO Capital, the SMD, whereas Aslam Malik & Co, Chartered Accountants was penalised for not issuing the Net Capital Balance Certificate in accordance with the Securities and Exchange Rules, 1971 and the guidelines issued by the commission.
