Securities and Exchange Commission of Pakistan refers 16 cases to National Accountability Bureau

Islamabad, May 10, 2015 (PPI-OT): In line with Mr. Qamar Zaman Chaudhry, Chairman NAB’s firm resolve and commitment to eradicate corruption and corrupt practices from the country, the National Accountability Bureau (NAB) and Securities and Exchange Commission of Pakistan (SECP) agreed for creation of a Joint Task Force comprising of senior level officers of NAB and SECP in order to work expeditiously on 16 cases referred by SECP to NAB.

The recent complaint referred by Securities and Exchange Commission of Pakistan (SECP) to National Accountability Bureau (NAB) is regarding alleged fraud, embezzlement and cheating public at large by the Sponsors, Directors and Management of M/s ACE Securities (Private) Limited (ASPL) Broker of Karachi Stock Exchange Limited. The M/s ACE Securities (Private) Limited is alleged for handling of securities entered in the sub-accounts maintained under its participant ID without authority of the sub-account holders in violation of applicable laws.

The Karachi Stock Exchange (KSE) being a front line regulator has been receiving claims/complaints against M/s ACE Securities (Private) Limited (ASPL). On April 23, 2015 KSE through a Show Cause notice conveyed to M/s ACE Securities (Private) Limited (ASPL) that all trading work stations would be switched off before opening of market on Monday, April 27, 2015 if no response/action is given/taken by the ASPL’s.

On failure to address the investor’s claims by ASPL, the KSE vide Notice dated April 27, 2015 suspended operations of all trading terminals of ASPL till further notice. The total numbers of complaints received by the Karachi Stock Exchange (KSE) against ASPL are 201 and the alleged amount of claims against M/s ACE Securities (Private) Limited (ASPL) is Rs. 236 million.

In view of the alarming rise in number of unresolved complaints against M/s ACE Securities (Private) Limited (ASPL), Chairman NAB has ordered inquiry regarding alleged fraud, embezzlement and cheating public at large by the Sponsors, Directors and Management of M/s ACE Securities (Private) Limited, Broker of Karachi Stock Exchange Limited at the earliest regarding the matter.

On the basis of inquiry report, an appropriate action will be initiated against the persons involved in fraud and embezzlement and cheating public at large in the case of M/s ACE Securities (Private) Limited, Broker of Karachi Stock Exchange Limited.

Furthermore, the National Accountability Bureau (NAB) and Securities and Exchange Commission of Pakistan (SECP) have agreed to establish a Joint Task Force comprising of senior level officers of NAB and SECP in order to have better coordination, interaction and to work expeditiously on the corruption cases referred by SECP to NAB within the SOPs laid down by NAB.

The mandate of the Joint Task Force will oversee and assist to relevant investigation officers of Financial Crimes Investigation Wing of NAB in order to have inquiry/investigation related to fraud, embezzlement, corrupt practices and cheating public at large by the sponsors, directors and management of brokerage houses of the stock exchanges referred by SECP to NAB on top priority basis with the intention to recover investor’s hard earned money which has been misappropriated for personal benefits of the sponsors and Directors of the Brokerage Houses.

For greater cohesion in the professional work and the constitution of Joint Task Force at NAB Headquarters, 02 senior level officers/experts from SECP (one each from legal and operation side) and senior level officers of NAB from Financial Crimes Investigation Wing, Operation and Prosecution wing have been identified to be part of Joint Task Force and have started their work in line with the rules and regulations of SECP and NAB.

The Chairman NAB has directed all NAB officers/ officials to conduct all inquiries/investigations of the cases referred by SECP to NAB in line with the laid down SOPs/laws transparently and on merit in order to restore investor’s confidence and penalize the accused persons responsible for causing huge loss to general public and national exchequer as NAB believes Zero tolerance against corruption and corrupt practices across the country.

For more information, contact:
National Accountability Bureau (NAB)
ATTATURK AVENUE G-5/2, Islamabad
Tel: +92-51-111-NAB-NAB (111-622-622)
Fax: +92-51-9214502-03
Email: chairman@nab.gov.pk, infonab@nab.gov.pk