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ISLAMABAD: 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, and show-cause notices were issued to four brokerage firms of the Lahore Stock Exchange.
The notices have been issued under various provisions of securities laws, while 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.The notices have been issued to Switch Securities, First Pakistan Securities, Wasi Securities and HSZ Securities.
One broker has been penalised under Rule 8 of the Brokers and Agents Registration Rules, 2001, for misstatement and failure to provide information to the SECP.
An official of the SECP stated that amendments have been approved to the General Regulations of the Karachi Stock Exchange, in line with the Financial Action Task Force recommendations to implement an efficient anti-money laundering/counter financing of terrorism regime in Pakistan. These amendments require all brokers to formulate and implement effective know your customer and customer due diligence policies and procedures.
