SECP, stock exchange to probe irregularities by MR Securities

ISLAMABAD: The Security Exchange Commission of Pakistan (SECP) on Thursday took a serious note of fraud by MR Securities, a Lahore based stockbroker, a statement said

In order to forestall such fraudulent practices the SECP chairman Zafar Hijazi convened a meeting of PSX Board of Directors (BoDs). "The SECP would not tolerate such activities as it was its prime responsibility to protect investor interests," Hijazi said in a statement.

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.