INTERIM ORDER Whereas Messers. Syed Ali Imam Naqvi, Syed Tahir Hussain, Rehan Abbas Turabi, Errol Mark D'Silva, Eric John D'Silva, Tariq Laiq, Mohammed Javed, Shakeel Ahmed, Syed Muhammad Ali Shah, Anis ur Rehman, Anwar ul Hassan Siddiqi, Altaf Ahmed Siddiqi, Syed Arif Ali, Abbas Mirza, Syed Abdullah ('the complainants") have filed a complaint with the Securities and Exchange Commission of Pakistan ('the Commission") alleging that Mr. Tariq Saeed of TM Financial Services ("the Respondent") is dealing in securities on behalf of the clients /investors, through M/s Zafar Moti Capital Securities (Pvt.) Ltd. and M/s Bagasra Securities (Pvt.) Ltd. Additionally, according to the information received from Central Depository Company of Pakistan Ltd, you Mr. Tariq Saeed have sub-accounts maintained with M/s Zafar Moti Capital Securities (Pvt.) Ltd., M/s Bagasra Securities (Pvt.) Ltd., M/s. Sherman Securities, M/s. Ashfaq Ashraf Securities and M/s Clicktrade Securities. The complainants have submitted documentary evidences in support of their claim which include copies of printed receipts/vouchers, trade sheets and account opening form issued by TM Financial Services which confirm that you Mr. Tariq Saeed of TM Financial Services are dealing in Securities on behalf of the clients/investors in an illegal and unlawful manner. Furtherance to this, as per the registration wing of the Securities Market Division (SMD) you, are not registered as brokers/agent with the Commission under the Brokers and Agents Registration Rules, 2001 ("the Rules").
2. Whereas Section 5(A) of the Securities and Exchange Ordinance 1969 ("the Ordinance") provides that no person shall act as a broker or agent to deal in the business of effecting transactions in securities unless he is registered with the Commission in such manner, on payment of such fees and charges and on such conditions as may be prescribed. As the Respondent is unauthorized/unregistered person, therefore his activities to deal in securities on behalf of clients/investors are illegal and complete disregard to the applicable securities laws and rules.
3. Pursuant to the above, prima facie it appears that Respondent is dealing in securities as broker/agent and involved in activities ancillary thereto by providing services to the public for purchase and sale of listed shares. It indicated that the Respondent is dealing in securities illegally and without due authorization in clear violation of Section 5(A) of the Ordinance read with the Rules. As the Respondent is holding shares/amount of genuine investors/clients in various CDC accounts and trading accounts opened/maintained with M/s Zafar Moti Capital Securities (Pvt.)
Ltd., M/s Bagasra Securities (Pvt.) Ltd., M/s. Sherman Securities (Pvt.) Ltd., M/s. Ashfaq Ashraf Securities (Pvt.) Ltd., and M/s Clicktrade Securities (Pvt.) Ltd., and as such, under Section 20 of the Ordinance, read with Section 20(6)(g) of Securities and Exchange Commission of Pakistan Act, 1997 it is deemed appropriate in the public interest to temporarily freeze the accounts of the Respondent and his affiliates (if any) and prohibit any transferring of shares/amount out of these CDC accounts and respective trading accounts.
4. Therefore, I hereby prohibit any movement of securities from his respective CDC accounts and payment of funds from his respective trading accounts till further orders under Section 20 of the Ordinance. The Respondent and his affiliates are hereby afforded an opportunity to explain their position before the undersigned July 06, 2007 at 4 p.m. at the office of Securities and Exchange Commission of Pakistan, Southern Regional Office, Securities Market Division (South), 5th Floor, State Life Building No.2, Off I.I. Chundrigarh Road, Karachi.
5. This Order is issued pursuant to the Show Cause Notice/ Prohibitory Order dated June 29th, 2007.