The Board of Directors of Karachi Stock Exchange (KSE) on Friday forfeited the TRE Certificate of M/s ACE Securities with immediate effect. The KSE board also asked the TREC holders, investors, clients of the defaulting brokerage house and other concerned for their claims arising out of the transactions made subject to KSE regulations, if any.
The claims are to be submitted with KSE's Default and Arbitration Wing along with all the documentary evidences and duly-filled "Investors' Claim Form". June 15 has been set as a deadline for the submission of claims against ACE Securities. "After that no claim shall be entertained by the KSE," said Abbas Mirza, a KSE general manager.
About KSE's decision on forfeiture, the official said it was due to ACE Securities' financial precariousness evident from the non-resolution of large number of investors' claims. "It may be noted that the forfeiture of TRE Certificate of ACE Securities by KSEL shall not affect the rights of their clients/ creditors in any manner and said corporate entity remains responsible for discharging all its financial obligations," Mirza warned. Those having already lodged their claims against the fraud brokerage firm should not repeat their complaints. "These are already being processed,". However, the manager noted, in case they needed to submit additional evidences in support of their already lodged claims, such claimants might submit relevant documents to the KSE within specified time by specifically mentioning their assigned claim number against their claim as reference.
The front regulators would scrutinize all the invited claims received with available records of the defaulting TREC holder, Central Depository Company and payments/receipts proving documents including; bank statements, cheques to ascertain its legitimacy. KSE has employed the services of a reputed firm of chartered accountants to verify each claim and to ascertain its genuineness. The regulator warned of appropriate legal action those who would lodge false or fictitious claims.