1. Subject: Suspension of UIN - 4210154429707 on Frequent Order Cancellation in Various Scrips Dear Sir, This is with reference to the captioned subject.
2. In this regard, please note that your trading activity in Karachi Stock Exchange ("KSE") during the period from January 01, 2015 till February 06, 2015 ("the Period") has been reviewed and it has been revealed that you had placed significant quantum of buy and sell orders in various scrips out of which a large proportion was cancelled/deleted within 05 to 10 seconds after the placement of the orders.
3. The order level data and trade level data has revealed that a significant quantum of buy and sell orders, in various scrips during the aforesaid Period, were cancelled/deleted within 05 to 10 seconds after their placement. The summary statistics of your trades is given below: {{TABLE}} 5.
4. Total orders .
5. Orders cancelled % Age of cancelled Orders to total. Orders Orders cancelled within 05 seconds % Age of orders cancelled within 05 seconds to total cancelled Orders Sr.
6. Name FIX19401 MEM19431 THM19402 Tariq 334015 4,250 1,947 45.81% 648 33.28% Client code Further analysis of the trading data revealed that majority of above mentioned activity is carried out in the below mentioned illiquid scrips: Sr # : .. . .. Scrip ......,-,. . - Name. Ii.' - :,:::,.:0;i:9.. .
7. A ..:vr.'41::: :...... 1"ced:::. .:...Pit. - ..
8. Ofdes::::. :: einCellCd ....... - !44;e!f: :pancelleil..,., .:..61.
9. 9 erS:.:... .:; led:tii' H: cainci..... .
10. Lot-al:000S ... N. (h. &cancelled., orders .Within OS to total Orders % Age of .
11. Cancelled orderS::: within 05. : .. Ds to total:::: :.seF.00 . To . .....
12. Cincelled urderii::: E'''N'''''er:44111 :.::.Iiiife:re::. :within* :. - -" - ..... '10.Sectinds.To ....... --:.:.. ..- .Totii ....r.....Rs 10 :de'. .%Ati:of 9e011ed.Orders 10 ..Within... ... .: seconds .: tolotal .::. Dd :!...Caneelle :orders I A1DOS 51 42 82.35% 34 80.95% 36 85.71% 2 AGTL 253 249 98.42% 212 85,14% 231 92.77% 3 AHL 91 84 92.31% 50 59.52% 54 64.29% 4 CPPL 42 34 80.95% 29 85.29% 32 94.12% 5 MAR/ 161 110 68.32% 67 60.91% 75 68.18% 6 NMFL 7 7 100% 5 71.43% 5 71,43% 7 PAEL 6 6 100% 6 100% 6 100% 8 P1BTL 84 55 65.48% 43 78.18% 43 78.18% 9 TREET 58 48 82,76% 33 68.75% 35 72.92% Total 753 635 84.33% 479 75.43% 517 81.42% Based on the above facts, the trading practice adopted by you is in conflict with the fair market practices and you have ignored the provisions of the prevalent securities market law. It is established that the placement of large sums of orders by you were without intention to buy or sell of shares and gave false and misleading impression in the market, This practice is detrimental to the interest of the general public while buying and selling of shares. Hence, your trading activity portrays false and misleading appearance in active trading in any security and interfered with fair and smooth functioning of the market. In order to protect the interest of active and fair investors, it is imperative to stop such activities to create just and smooth functioning of the market.
13. In view of the above, I am directed to inform you that the Securities and Exchange Commission of Pakistan ("SECP") in exercise of its power under Section 20 (6) (g) of Securities and Exchange Commission of Pakistan Act 1997, has suspended your UIN with immediate effect for a period of 01 year i.e. Till February 13, 2016 from the date of this letter. Further, your all CDC sub-accounts and Investor Accounts are freeze for a period of one year. However, you are only allowed to divest your existing holding during the suspended period as and when desired. Moreover, this suspension will not be applicable on settlements which are pending.
9. This direction is issued without prejudice to any other action that the Commission may initiate in accordance with law on the matters subsequently investigated or otherwise brought to the knowledge of the Commission.