Penalties unacceptable, says Karachi bourse

KSE will seek legal remedy against fines imposed for alleged negligence.

KARACHI: The Karachi Stock Exchange (KSE) said on Thursday the order of the Securities and Exchange Commission of Pakistan (SECP) penalising the exchange along with its managing director and deputy managing director is not tenable under the law and liable to be set aside.

The statement was in response to a news story published in The Express Tribune on Tuesday about two orders issued by the SECP that slapped penalties on the KSE and its senior management for alleged deviation from the requirements of the System Audit Regulations of Exchange and alleged negligence in the discharge of duties and obligations.

“The Karachi Stock Exchange … intends to vigorously defend its stance and seek legal remedies available under the law to clarify its position. The exchange has performed its functions under the aforesaid regulations to ensure compliance in a fair and reasonable manner,” the statement said.

Furthermore, it said, no penal action could be taken against the exchange and its officers in respect of exercise of their regulatory powers under these regulations.

“The orders are not tenable under the law and liable to be set aside since the same have been passed without appreciating the facts and legal position in their true perspective,” the statement said.

Published in The Express Tribune, May 30^th, 2014.

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