SECP takes action against illegal commodity exchange

08 Jan, 2011

In order to safeguard the interest of common investors, the Securities and Exchange Commission of Pakistan (SECP) has taken cognisance of unregistered commodity futures trading. The SECP has issued an order against Ravi Oil Cake Traders, a partnership firm, for operating an illegal commodity exchange. The firm violated Section 3(1) of the 1969 Securities and Exchange
Ordinance by providing unauthorised trading facilities in cottonseed oil futures' contracts thereby posing a risk to the deposits of numerous investors. A penalty of Rs 10 million has been imposed on the two partners of the firm. The general public is being cautioned that all transactions in commodity futures contracts, in Pakistan, are governed by the 2005 Commodity Exchange and Futures Contracts Rules.-PR

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