ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has approved a formal referral to the Federal Investigation Agency (FIA) for legal action in the Bagasra Securities case, more than 16 years after the brokerage ceased operations, with nearly Rs49 million in approved investor claims still unpaid.

The approval allows a written reference under Section 41B of the SECP Act, 1997, enabling the FIA to initiate formal proceedings over alleged unauthorised transfers and pledging of clients’ shares.

The SECP said the names of Sikandar Esmail Ahmed, director and CEO; Shakeela Sikandar, director; and Arshad Iqbal, advocate and liquidator, had been forwarded to the FIA as accused in the matter.

The SECP initiated an inquiry in March 2010 following complaints about unauthorised dealings in clients’ securities. The inquiry, completed in October 2013, found that clients’ shares had been transferred and pledged without consent to obtain financing and meet exposure margins.

It said the funds were used to benefit selected clients at the expense of others. A total of 176.2 million shares, including clients’ holdings, were pledged between July 2007 and March 2010.

Banks and the stock exchange subsequently exercised pledge calls, resulting in the sale of pledged shares following default.

The inquiry report also recorded that the brokerage’s directors and liquidator failed to provide the required records, leaving the committee to rely on information obtained from the Central Depository Company, Pakistan Stock Exchange and banks.

Published in Dawn, October 4th, 2026