KSE, Market Supervision Department: SECP appellate bench to resolve dispute as per law

An appellate bench of Securities Exchange Commission of Pakistan (SECP) will resolve the dispute between Karachi Stock Exchange (KSE) and SECP's Market Supervision Department. Recently, Market Supervision Department of SECP has imposed penalties on Karachi Stock Exchange and its top management including Managing Director and Deputy Managing Director on account of negligence in taking actions against non-compliant brokers.
On Monday, KSE and its top management filed an appeal against the penalty imposed by SECP. Although, the last date of appeal was June 22, 2014, but since it was a Sunday, the appeal was received on Monday, a SECP official said. According to SECP official, appellate bench will hear the both parties, ie KSE management and SECP's Market Supervision Department to decide the matter in accordance with law.
"It should be noted that as per the existing regulatory framework, brokers are required to conduct System Audit for the purposes of their health-check and stock exchange management as part of their routine function are entrusted with the responsibility to take action against non-compliant brokers as the requirements of the System Audit Regulations", an official said.
Nadeem Naqvi confirmed that they had made an appeal to SECP for review of its decision. "We respect the rules and regulations being issued by the regulator, however appeal against the decision was our right", he added. It may be mentioned here that Director Market Supervision & Registration Department SECP has imposed a penalty of Rs 200,000 on Managing Director and 500,000 on Deputy Managing Director for non-compliance of System Audit Regulations.