The Securities and Exchange Commission of Pakistan (SECP) has filed a reference/complaint against a brokerage house of Karachi Stock Exchange (KSE) to National Accountability Bureau for initiating enquiry under the NAB Ordinance. Earlier, the KSE in mid-July this year suspended the trading terminals of that brokerage house. KSE received a number of complaints from the clients of the brokerage house to the tune of approximately Rs 250 million claiming that the brokerage house has illegally sold their securities without their authorisation. Besides few investors claimed that their credit balance with the brokerage house has been misappropriated and used by the directors for their personal benefits and they are not returning their money.
Sources said that the KSE and SECP gave sufficient time and opportunity to the brokerage house to make good the default by returning the money to the clients but the directors did not seem to be serious and failed to settle the claims. he SECP requested the NAB to investigate the affairs of the brokerage house and to confiscate the assets of the brokerage house, personal assets of directors and their spouses for recovering and distributing the funds to affected investors. The NAB has been requested to place the names of the directors of the brokerage house on Exit Control List.
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