By Ishfaq Ahmed
Islamabad, The Securities and Exchange Commission of Pakistan (SECP) has decided to file a criminal complaint in the court of an additional sessions judge, Lahore, against the authorities of YS Securities and Services (Private) Limited after finding strong evidence of malpractices adopted by the high-ups of the company.
Sources told the scribes that the case will be filed against Farooq Younas Khan, director/chief executive, Muhammad Junaid Ahmed, director, and Muhammad Zulsham Younas Khan Sherwani, former director of the YS Securities and Services (Private) Limited, a former member of the Lahore Stock Exchange.
Source said that an inquiry committee established by the SECP comprising of single officer. The inquiry committee has submitted its report to the authorities last week.
According to the inquiry report, the accused party (YS) did not conduct trading in the clients’ accounts despite receipt of the payments from them. The accused provided false statements to its clients and dishonestly showed their respective shares as “available”, however, as per the CDC’s record, the said shares were not available in investors’ accounts.
The accused also moved shares from clients’ CDC-sub-accounts to benami (without name) accounts without their authorization, and subsequently misappropriated them in violation of Section 24 of the 1997 CD Act. Furthermore, the accused failed to provide the record and appear before the inquiry team, despite repeated notices issued by the inquiry team under Section 21 of the ordinance and under Section 32 of the SECP Act.
Sources said that the decision to file a criminal complaint in the court against YS has been taken after establishing documentary evidence and recording of the witness statement.
Sources said that the SECP has received complaints against the YS regarding non-payment of funds, non-transfer of shares and closure of its offices without any notice to the Lahore Stock Exchange (LSE).
As per the inquiry report, 984 complaints/claims of 342.706 million Rupees were filed against the YS with the LSE and the SECP.
On the other side, the governing board of directors of the LSE has been active against the YS and suspended trading rights of the YS and terminated its membership on the directive of the SECP.
The regulatory body forwarded the names of the accused to the relevant authorities to be placed on the existing control list.
Apart from the above, the SECP has also forwarded the case to the NAB for action against the accused, and is also providing full assistance to the NAB in this regard.
Islamabad, The Securities and Exchange Commission of Pakistan (SECP) has decided to file a criminal complaint in the court of an additional sessions judge, Lahore, against the authorities of YS Securities and Services (Private) Limited after finding strong evidence of malpractices adopted by the high-ups of the company.
Sources told the scribes that the case will be filed against Farooq Younas Khan, director/chief executive, Muhammad Junaid Ahmed, director, and Muhammad Zulsham Younas Khan Sherwani, former director of the YS Securities and Services (Private) Limited, a former member of the Lahore Stock Exchange.
Source said that an inquiry committee established by the SECP comprising of single officer. The inquiry committee has submitted its report to the authorities last week.
According to the inquiry report, the accused party (YS) did not conduct trading in the clients’ accounts despite receipt of the payments from them. The accused provided false statements to its clients and dishonestly showed their respective shares as “available”, however, as per the CDC’s record, the said shares were not available in investors’ accounts.
The accused also moved shares from clients’ CDC-sub-accounts to benami (without name) accounts without their authorization, and subsequently misappropriated them in violation of Section 24 of the 1997 CD Act. Furthermore, the accused failed to provide the record and appear before the inquiry team, despite repeated notices issued by the inquiry team under Section 21 of the ordinance and under Section 32 of the SECP Act.
Sources said that the decision to file a criminal complaint in the court against YS has been taken after establishing documentary evidence and recording of the witness statement.
Sources said that the SECP has received complaints against the YS regarding non-payment of funds, non-transfer of shares and closure of its offices without any notice to the Lahore Stock Exchange (LSE).
As per the inquiry report, 984 complaints/claims of 342.706 million Rupees were filed against the YS with the LSE and the SECP.
On the other side, the governing board of directors of the LSE has been active against the YS and suspended trading rights of the YS and terminated its membership on the directive of the SECP.
The regulatory body forwarded the names of the accused to the relevant authorities to be placed on the existing control list.
Apart from the above, the SECP has also forwarded the case to the NAB for action against the accused, and is also providing full assistance to the NAB in this regard.
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