Sections 6 and 22 of the Central Depository Act (XIX of 1997), Section 24 and 28 of the Stock Exchange Members (Inspection of Boxes and Records) Rules, 2001, Section 3 and 4 of the Securities and Exchange Rules, 2001, Third Schedule by the Company Misappropriation of securities The irregularities in the calculation of net capital balance (NCB) offered by the inspector team, which the Legislature has set up, revealed that the company was able to disclose the relevant history of its clients' securities to NCB. Has been subjected to wrongdoing in its calculation, and it has been shown that the NCB Securities and Exchange Rules, 1971 The facts were not in line with the third schedule of evidence / information available on record, establishing that the company misinterpreted the aging process, which resulted in exceeding the NCB and existing liabilities. Inaccurate calculation, this resulted in the termination of the company-submitted NCB if the company's NCB was strictly complied with the requirements of the Securities and Exchange Rules, 1971. In many cases, it was established that the company had transferred / pledged shares in its house account without the proper authorization of its clients, such mismanagement of the securities of the clients, in contravention of Section 24 of the Central Depositories Act 1997 Was a violation, which was punished under Article 28 of the Rules, in violation of the Ordinance Act. And the regulation was a serious matter. The company, under the circumstances, was directed to collect Rs 300,000 (three thousand rupees red thousand) under section 22 of the Securities and Exchange Ordinance, 1969, and penalties through Section 28 Central Depository Act 1997.
Related judgments — Securities and Exchange Commission of Pakistan, 2015
