ISLAMABAD: In a bid to curb unlawful financing, the Securities and Exchange Commission of Pakistan (SECP) has warned the stock market brokers not to violate laws vis-a-vis financing their long-term clients, a local media reported.
The SECP Appellate Bench asked stock brokers to shun practice of developing a strong client relationship through illegal financing.
Moreover, the SECP order held that the broker company which extends financing to clients by way of executing their trades despite not having sufficient funds in clients’ accounts is also contravention of section 34 of the Securities (Leveraged Markets and Pledging) Rules, 2011 (the Securities Rules).
