KARACHI: Pakistan Stock Exchange (PSX) on Thursday imposed restriction on M/s. New Peak Securities (Private) Limited – TREC Holder – on failure to comply with the instructions of the exchange.
In a notification, the PSX informed all market participants that M/s. Peak Securities (Private) Limited – TREC Holder, PSX (New Peak) failed to comply with the instructions of the exchange, which is a non compliance of clause 20.5.1 of PSX Regulations.
The said clause is reproduced as:
“20.5.1. Pursuant to Clause 20.4 hereinabove, the CRO, sub-committee of RAC or RAC, as the case may be, may initiate disciplinary actions against a TRE Certificate Holder under sub-clause 20.5.2 when it is prima facie established that such TRE Certificate Holder has breached one or more of the PSX Regulations or failed to comply with a policy, procedure, order, notice, guideline, direction, manual, decision, instruction or ruling of the Exchange or failed to provide any required information or provided incomplete, false, forged or misleading information to the Exchange as may be required from time to time.”
In order to protect the interest of investing public, the exchange, after providing due hearing opportunity, has decided to “impose restriction on opening of new clients’ accounts” with immediate effect alongwith financial penalty on New Peak, under clause 20.5.2 of PSX Regulations.
The said clause is reproduced as:
“20.5.2. GENERAL DISCIPLINARY ACTIONS:
Disciplinary actions that may be taken pursuant to sub-clause 20.5.1 are as follows:
(a) Issue a warning in writing to act more carefully and vigilantly;
(b) Reprimand in writing that the conduct warrants censure;
(c) Impose a fine;
(d) Impose any one or more conditions or restrictions;
(e) Mandate educational qualification, training or such other program as may be determined by the relevant authority to be undertaken or implemented by the Broker for its employees;
(f) Direct to take remedial actions to rectify the breach including appropriate action(s) against any of its employees concerned behind such breach, whether directly or indirectly ; and/or take such other action as the relevant authority may deem appropriate;
(g) Suspend any or all trading terminals.”
The PSX said that the enforcement action has been taken without prejudice to the right of the exchange to further initiate any inquiry, special audit with expanded, restricted or different scope to take any punitive action against New Peak in accordance with relevant regulations on matters subsequently investigated or otherwise brought to the knowledge of the exchange.
