Another brokerage house defaults

What might be constituted by some as an act to purposely downplay the news of another default by a brokerage house, M. Abbas Mirza, the recently appointed Acting Chief Regulatory Officer(CRO) of PSX, on Thursday notiefied of Islamabad based AWJ securities default by quietly posting a notice on the PSX website.

The notice read: “All clients of M/s. M.R. Securities (SMC-Private) Limited and M/s. AWJ Securities (Private) Limited are requested to submit their claims arising out of the transaction(s) made subject to the regulations of the PSX against the aforementioned TRE Certificate Holders on their below mentioned addresses under copy to Regulatory Affairs Division of Pakistan Stock Exchange Limited nearest to your location in Lahore, Islamabad and Karachi along-with all the documentary evidences and your complete contact details.”
Last week PSX had sacked its CRO over the default made by MR Securites, a Lahore based brokerage house.
A broker speaking on condition of anonymity said that if mishandled by the regulators this could result in a domino effect. “Many other brokerage houses that had suffered badly in the 2008 crash might find this to be an opportune time to make good those losses by running away with their clients money”, the broker said.

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