The Securities and Exchange Commission of Pakistan (SECP) issued 10 orders, 34 show cause notices and 12 warning letters to various companies and individuals for contravening the various provisions of the Securities and Corporate Laws during April 2013.
The SECP passed an order against the Chief Executive Officer of CYAN Ltd, who was also a director in Dawood Hercules Corporation Ltd, an associated listed concern, for indulging in a scheme of insider trading, and a penalty of Rs 1 million was imposed. Furthermore, an order was passed against CYAN Ltd for insider trading in the scrip of Dawood Hercules, and a penalty of Rs 2 million was imposed while another order was issued against CYAN Ltd for trading in the shares of its associated concern in the closed period.
Based on the findings of on-site inspection of the Karachi Stock Exchange (KSE) brokers conducted by SECP, orders were issued against Axis Global Ltd, Al-Hoqani Securities, Shajar Capital Ltd, First Equity Modaraba, Muniff Ziauddin Junaidy & Co, Nasir Javaid Maqsood Imran Ashfaq Chartered Accountants and Riaz Ahmad Saqib Gohar & Company Chartered Accountants.
Five show cause notices were served for insider trading to various entities and individuals; moreover, three show cause notices have been issued to listed companies for violation of the Listing Regulations; a further six show cause notices were issued to KSE, brokers and their auditors for violation of the Securities and Exchange Ordinance, 1969.
In addition, sixteen show cause notices were issued to directors and beneficial owners of listed companies for late filing of the returns of beneficial ownership, and four show cause notices were issued to beneficial owners and issuers of the listed securities for recovery of the tenderable gain under Section 224 of the Companies Ordinance, 1984.
Warning letters were issued to Ashfaq Textile Mills, KSB Pumps Company; Prudential Capital Management for not abiding by the listing regulations of the KSE; moreover, nine warning letters were issued to the beneficial owners of Bank of Khyber, Murree Brewery Ltd and Pak Gum and Chemical Ltd for late filing of returns of beneficial ownership.
