SECP served 24 show cause notices to brokers: Senate body told

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ISLAMABAD, March 8 (APP): Senate Standing Committee on Finance
and Revenue Wednesday was informed that Securities and
Exchange Commission (SECP) had issued 24 show cause notices to brokers involved in inside trading in Paksitan Stock Exchange (PSX).
The committee, headed by Senator Saleem H Mandviwalla, was also informed that the commission would issue further notices to 26 brokers involved in the illegal trading.
Chairman SECP Zafar Hajazi briefing the committee categorically denied the allegations leveled by the brokers about pressurizing them and said all action taken against them were quaci judicial.
He informed that abnormality was witnessed in the capital market during November last year as index was increased by 9,000 points in a single day and 3,000 points on the next day.
The SECP had started the study of the situation and
investigation were initiated to identify the abnormality in the
capital market to avoid any possibilities of illegal
trading, he added.
He said investigation were carried out and 24 brokers
were involved in illegal investment, adding the brokers
had admitted their mistakes and tendered their apologies.
He also rejected the allegations that the SECP official had made
phones calls to brokers and pressurized them, adding they were
served show cause notices, which aimed at investigating the illegal
financing.
The other objective of the investigation was also to review
the available products for financing and remove the bottleneck if
any to facilitate the investors, he added.
The SECP head said he was striving to make the security
market a transparent market to avoid any crisis like situation that
had happened in past and affected about 100,000 investors.
He said due to strong fundamentals, despite selling
behaviors of the foreign investors which tried to create destabilization, the market remained stabled.
Zafar Hajazi said the SECP had restored the confidence of
local investors by adopting the transparency and making the
commission an independent organization.
He said the SECP as regulatory body was fulfilling the
international set standards and it was focusing on development and
regulation.
Commissioner SECP Akif Ahmad informed about the
overall performance of the commission and said a risk
management cell was established to monitor the security market.
He said currently the PSX was trading on 49,000 points
and after the integration of three stock exchanges there were 303
brokers.
He said the SECP singed memorandum of understanding with 20 top
universities and launched jamma punjji portal for the education of
investors.
Meanwhile, Chairman Federal Board of Revenue (FBR) informed
that no additional indirect tax was charged on domestic and house holds electricity consumers.
The committee also expressed it concern over the non
implementation of its recommendation on the repartition of an FBR
official in Azad Kashmir and directed chairman FBR to submit report
before the committee.
Regarding the import of auto parts in the shape of scrap from
Japan and reassembling of the same into cars, Senator Mian Ateeq
Shaikh was tasked to form proposals to safeguard the local industry.
Senators, Ilyas Ahmad Bilour, Muhammad Mohsin Khan
Leghari, Ayesha Raza Farooq, Saud Majeed, Osaman Saifullah and
Sardar Fateh Muhammad Muhammad Hassani attended the meeting.