SECP starts criminal proceedings against Ahmed Nadeem Securities

The Securities and Exchange Commission of Pakistan (SECP) has filed a criminal complaint against Muhammad Ahmed Nadeem, chief executive and shareholder of Muhammad Ahmed Nadeem Securities (Pvt) Ltd and ex-member of Islamabad Stock Exchange, and Muhammad Ahmed Janjua, company secretary. The complaint has been filed under section 32(5) of the Securities and Exchange Commission of Pakistan Act, 1997. “The Court after recording the complainant’s statements and examination of documentary evidence has issued summons to the accused to appear on July 5, 2013,” said a statement issued on Thursday by SECP spokesperson Imran Ghaznavi. Giving details of the case, it said the Commission after receipt of investor complaints against the company regarding non-payment of cash balance available in investors’ accounts, and refusing to transfer their shares took notice of the matter and directed the ISE to take appropriate action against the company. The Governing Board of ISE suspended the company’s trading rights on May 25, 2012, and directed the company to settle investor complaints. Contrary to the directions issued by ISE, the Company on June 02, 2012 filed a winding up petition under Sections 305 and 309 of the Companies Ordinance, 1984 in the Islamabad High Court. Subsequently, ISE notice dated June 12, 2012 cancelled the membership of the company in accordance with the terms of Article 33(b) of Articles of Association of the Islamabad Stock Exchange. The Commission in exercise of the powers under Section 21 of the Securities and Exchange Ordinance, 1969 read with Section 29 of the Securities & Exchange Commission of Pakistan Act, 1997 ordered an enquiry against the Company through an order dated July 31, 2012. However, the Director and Company Secretary did not provide the requisite records required by the enquiry team. In addition, they failed to appear before the enquiry team, despite repeated notices issued by the Commission under section 32 of the Securities and Exchange Commission of Pakistan Act, 1997.