SECP files criminal complaint against brokerage house.
ISLAMABAD, July 16 -- The Securities and Exchange Commission of Pakistan (SECP) has filed a criminal complaint in a court against Cliktrade Limited - a former member of the Karachi Stock Exchange (KSE) for not transferring shares/funds and for its unauthorised pledges of clients' shares and other prohibited activities under the Section 24 (2) of CentralDepositories Act, 1997 as well as offences under relevant provisions of the Pakistan Penal Code.
The arrest warrants have been issued for all the eight accused. The SECP had received a number of complaints against the brokerage house. The brokerage house failed to comply with the SECP directions to resolve complaints and to transfer shares into respective Central Depository Company (CDC) accounts. Consequently, on June 26, 2009, the SECP, suspended registration of Cliktrade along with four other brokerage houses.
The SECP appointed enquiry committees comprising officers from the Commission, KSE and CDC to enquire into the matters relating to unresolved complaints against the five brokers.
The scrutiny of records revealed that the brokerage house without clients' consent transferred shares and pledged them with the bank to obtain financing. The finances obtained were mostly used to liquidate liabilities of brokerage house or its directors, their relatives and friends. The brokerage house and its bigwigs also misused the powers given to them under the CDC sub-account opening form in moving or pledging the shares of their clients from their respective sub-accounts, resulting in a total loss to the clients. staff report
Published by HT Syndication with permission from Daily Times. For more information on news feed please contact Sarabjit Jagirdar at htsyndication@hindustantimes.com
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| Publication: | Daily Times (Lahore, Pakistan) |
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| Date: | Jul 16, 2010 |
| Words: | 279 |
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