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INTEGRATED EQUITIES LIMITED vs DIRECTOR (ADJUDICATION-I), ADJUDICATION DIVISION S — 2025 CLD 1894 SECURITIES-AND-EXCHANGE-COMMISSION-OF-PAKISTAN

Case information

Citation
2025 CLD 1894 SECURITIES-AND-EXCHANGE-COMMISSION-OF-PAKISTAN
Year
2025
Reporter
CLD
Parties
INTEGRATED EQUITIES LIMITED vs DIRECTOR (ADJUDICATION-I), ADJUDICATION DIVISION S
Provisions referred to
S. 6

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

Judgment text as reported

INTEGRATED EQUITIES LIMITED VS DIRECTOR (ADJUDICATION-I), ADJUDICATION DIVISION S. 6(a)(2)(h)---Securities and Exchange Commission of Pakistan (anti Money Laundering and Countering Financing of Terrorism ) Regulations, 2018 , Regln. 11---Beneficial owner of shares, verification of---appellant was a Trading Rights Entitlement Certificate (TREC) holder of the Pakistan Sock Exchange Limited (PSX) and licensedas a securities broker with Securities and Exchange Commission of Pakistan ('the Commission')---appellant was penalized by the Commission as it (appellant) being a regulated person was required to identify the beneficial owner of shares and to take reasonable measures to verify the same---Contention of the appellant was that the client was a medical student and the shares in her account were gifted to her by her father---Validity---appellant was under an obligation to adhere to the relevant requirements of the Regulations which should have been followed by the appellant in true letter and spirit---appellant had provided the gift-deed to the respondent/Commission, though after the inspection but during the show cause notice proceedings---Record revealed that the client of the appellant was the beneficial owner of the shares as she received the shares from her father as a gift in her account from her father's account, and that the Central Depository Company did not transfer shares without legitimate proof which in the present case was the gift deed, which fact the respondent should have taken into account before the imposition of the penalty ; thus, there was apparently no impropriety on the face of the record---appellate Bench set-aside impugned order passed by the Director/Head of Department, adjudication --- appeal filed by the securities broker was allowed, in circumstances.

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