Two suspended KSE brokers leave country violating SECP instructions

[Naveed Yaseen]

By Salman Siddiqui

KARACHI: The chief executives of the two suspended brokerage houses of the Karachi Stock Exchange (KSE) have left the country though the Securities & Exchange Commission of Pakistan (SECP) has asked the Ministry of Interior to put their names on Exit Control List (ECL).

“SECP has given their (five suspended brokers) name to the Ministry of Interior on the same day on which their registration with the Commission was suspended i.e. June 26, 2009,” an SECP Commissioner told The News.

Two of the five brokers have, however, left Pakistan despite their names were lying with the Ministry of Interior, it was learnt.

“The five brokers owed over one billion rupees to their clients,” confirmed a member-director on KSE Board on the condition of anonymity.

The five suspended brokers are: (1) Eastern Capital; (2) Prudential Securities; (3) Cliktrade Limited; (4) MKA Securities; and (5) Capital One Securities.

The suspension of these brokers came into being after their clients complained against their non-cooperative behaviour that they (brokers) were not delivering shares to their clients against the payment they had received.

The brokers were believed to have sold their clients holdings to avert their likely default earlier. But they failed to come out of financial crisis and SECP had to suspend their membership.

The KSE has given them a deadline of upto August 12 to clear their dues. If they fail to do so then their assets and membership cards would be put on sale to payback dues of their clients, KSE director told.

http://www.thenews.com.pk/daily_detail.asp?id=190693