The Pakistan Stock Exchange (PSX) has suspended trading rights of a brokerage house after it failed to follow the rules and regulations.
It has been observed by the Exchange that AMCAP Securities (Private) Limited (AMCAP) violated various clauses of PSX Rule book including but not limited to Clients’ Assets Segregation and Inaccurate Bookkeeping.
PSX performed an off-site limited scope investigation into the matters of observed regulatory noncompliances and issued Show Cause Notice dated March 31, 2017 to AMCAP for providing written explanation and if desired, to appear before the undersigned alongwith the same by 5:00 P.M. April 04, 2017. However, AMCAP sought unreasonable extension in time for the same to delay the process.
PSX granted an extension of one day for them to collate information and
provide a satisfactory explanation. The revised deadline has elapsed and PSX has not been provided with any satisfactory explanation.
PSX has decided to suspend all trading terminals of AMCAP with immediate effect until further notice.
I checked with someone at Stock Exchange today. He said lately trading is slow and mentioned the problems with brokers being caught and also people are waiting for Panama court result.