SECP, PSX takes notice of fraud by MR Securities

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ISLAMABAD, Feb 9 (APP): Security Exchange Commission of
Pakistan (SECP) Thursday took a serious note of fraud by MR
Securities, a Lahore based stockbroker.
In order to forestall such fraudulent practices, the SECP
Chairman, Zafar Hijazi, convened a meeting of PSX Board of
Directors (BoDs), a statement said.
He said the SECP would not tolerate such activities as it
was its prime responsibility to protect investor interests.
He asked the PSX BoDs thoroughly investigate
if some of its officials were negligent in discharging their
regulatory responsibilities.
The PSX assured the SECP that it would complete the
investigation into the matter by February 13, and give its report by
February 14.
Later a meeting between the SECP and the PSX would be held to
take some decisive action.
The SECP chairman told the PSX BoDs that a deterrent
action should be taken against the stockbrokers who continued to
defame the market by defrauding investors and necessary measures
should be put into effect.
He said, “there is nothing dearer to my heart than investor protection, and we would take decisive action if PSX fails to shoulder its responsibility as the front line regulator.”
He expressed his disappointment with the role of auditors of
stockbrokers who continued to fail in raising red flags.
Instead, irregularities in brokerage houses which identified by investigations through the joint inspection teams and the SECP inspections.
The SECP had directed the PSX management to immediately inform
all affected investors through newspaper advertisements on how to
lodge their claims with it.
Meanwhile, the SECP’s inquiry officers team from Securities Market Division sent to Lahore was busy in collecting and analyzing office data of the broker’s offices in Lahore, Sahiwal, Multan and Bahawalpur.