CMDA is committed towards effectively discharging the enforcement functions with an important element of strong supervision of market intermediaries.

The effective enforcement of the Securities Act ensures that investor rights are protected, and that confidence in the integrity of the market is maintained at all times. This serves to raise the quality of financial services in the country and promotes further confidence in the capital market.

 

Reviews of returns - all licensed intermediaries are required to submit returns of their activities to the CMDA for analysis. The returns consist of financial statements as well as other information.

These returns are reviewed to ascertain the financial health of the licensed intermediaries and to detect any distress signals. All observed deficiencies are communicated to the intermediaries for corrective action.

 

Every quarter, with prior notice, the CMDA's staffs visits the offices of the intermediaries in a coordinated manner. This is aimed at ascertaining compliance with due process in the execution of clients mandate as well as adherence to best market practices.

 

 

 

The Board of the CMDA in its 70th meeting has decided to take administrative action viz impose a fine of MRF 10,000/- against the following market intermediaries for failure to fully comply with Section 27 of the Regulation on Conduct of Securities Business.

 

1. Aariya Securities Pvt Ltd.

2. Island Securities and Brokerage Pvt Ltd.

 

Section 27 of the Regulation on Conduct of Securities Business states, ‘Payment shall be made to the seller by the licensee on T+3 (Trade day + 3 days)’.

 

Makhzoom Saleem

Senior Manager, Market Regulation, Supervision and Enforcement

Capital Market Development Authority