SECP takes action against seven market players

Warning letters, show-cause notice issued.

KARACHI:

The securities market division of the Securities and Exchange Commission of Pakistan (SECP) took action against seven non-compliant market participants in February, according to the regulator on Tuesday.

Warning letters were issued to three brokerage houses of the Karachi Stock Exchange (KSE) for indulging in trading activities, which were in conflict with fair market practices, it said in a press release.

In another instance, a show-cause notice was issued to a listed company for failing to implement SECP orders. Moreover, warning letters were also issued to three directors of different listed companies for late filing of returns of beneficial ownership.

In an effort to strengthen the regulatory framework of capital markets, SECP said that it has accorded approval to a number of amendments to the regulations of three stock exchanges, a clearing company and a depository company. This includes provisions pertaining to the introduction of new products ie margin financing, margin trading and securities lending and borrowing.

In addition, approval was granted to Engro Fertilisers Limited to increase the number of options or shares to be issued and granted in pursuance to the Employees Stock Options Scheme under Section 86 of the Companies Ordinance 1984 read with the Public Companies (Employee Stock Options Scheme) Rules 2001. Moreover, SECP said it resolved 12 investor complaints in February.

Published in The Express Tribune, March 9^th, 2011.