NAB arrests stock broker

ISLAMABAD: The National Accountability Bureau (NAB), after a reference filed by the Securities and Exchange Commission of Pakistan (SECP), has arrested Hassan Waheed Khan, director, AWJ Securities Private Limited, a statement said on Wednesday.

The NAB team also raided the office of AWJ Securities located at Stock Exchange Tower, Islamabad and seized all the relevant record.

"NAB Rawalpindi presented the arrested director of the said brokerage at NAB court on Wednesday and secured a 10-day physical remand for investigations," the statement said.

The brokerage house is accused of defrauding public at large.

On a reference from the SECP chairman Zafar Hijazi, NAB has started extraordinary investigations over the default made by M/s MR Securities (SMC-Private) Limited and M/s AWJ Securities (Private) Limited, two brokerage houses, the statement added.

SECP chairman is determined to use full force of law against the defrauding stockbrokers to prevent such deceitful and corrupt business practices.

Two weeks ago, on the sudden closure of business by a Lahore-based stockbroker, the SECP chairman called an extraordinary meeting of the commission to review the situation arising out of the broker’s default.

In this unusual lengthy meeting, the commission decided to take all measures required to stop such deceitful and corrupt business practices.

The Securities and Exchange Commission of Pakistan chairman also took up the matter with PSX board and convinced them to play their due role as front line regulator.

Responding to SECP’s call, the PSX board suspended its chief regulatory officer pending a detailed inquiry and announced a number of steps to streamline business activities of stockbrokers and safeguard investors’ interests.

Hijazi had appreciated the immediate action by PSX and termed it a vital step for strengthening the stock market.

Before this, the SECP chairman sent an investigation team consisting of eleven officers to raid MR Securitas office, seize and inspect all record of MR Securities.

The five day investigation revealed that the broker house was involved in unauthorised trading, illegal deposits, non-payment of cash and non delivery of securities to investors.

It was also non-compliant with the requirement of segregation of client assets. The addresses, emails and phone numbers maintained by the broker were also fake and incorrect.

Considering the sensitivity of the matter, the Securities and Exchange Commission of Pakistan chairman had specially held a meeting with NAB chairman and requested him to take immediate action against the defaulting brokers.

On the instructions of NAB chairman, NAB Rawalpindi has started investigations against AWJ Securities and late Tuesday evening arrested Hassan Waheed Jan.