SECP cracks down on illegal trading activity

KARACHI: Securities and Exchange Commission of Pakistan (SECP) has launched a crack down against unlicensed operators carrying out illegal trading operations in currency, commodity futures across various cities of Pakistan.

“These illegal trading/brokerage establishments are running a black market operation in collaboration with foreign counterparts, by using foreign trading platforms/exchanges. These operations invariably involve illegal money transfers, causing a loss of valuable foreign exchange,” a statement said on Friday.

SECP has initially gathered preliminary data against over 30 illegal operators currently engaged in unlicensed trading activities. The SECP has decided to forward this initial list of illegal brokerage houses and their suspected agents to the FIA for an immediate crackdown.

This is the first step towards a comprehensive operation with the help of law enforcement agencies to target illegal trading and brokerage establishments, investors placing money into these illegal ventures and operators of platforms involved in the entire spectrum of this heinous business.

Moreover, SECP intends to educating local investors, coordinating with foreign regulatory counterparts and utilizing its international linkages including bilateral treaties with various jurisdictions to eradicate this menace.

The SECP is confident that cracking down on the black market will go a long way in protecting investors, raising government revenues by transforming the illegal into legal activity in the regulated and documented sector and saving the foreign exchange currently being sent abroad.

It is pertinent to mention that such elements had previously also started their illegal operations in 2002-2003. Even then, the SECP took strict action, in collaboration with the State Bank of Pakistan against these elements. That exercise had led to enforcement actions against 39 such establishments, including winding-up petitions filed against 14 companies, which include White House Securities, Wall Street Securities, Tycoon International, Exchange Impex and United Brokerage. The SECP also added directors of certain companies on the ECL.

It is important to highlight that those investors who wish to undertake trading of commodities and currencies futures can do so through the platform of Pakistan Mercantile Exchange (PMEX), which offers numerous products and has a large body of legal brokers involved in this business.

Bookmark the permalink.

Comments are closed.

  • RSS Newsnreleases

    • Dolfines SAS acquires 8.2 France 02-Aug-2021
      MONTIGNY LE BRETONNEUX, FRANCE: Dolfines SAS, an independent specialist in engineering and services for the renewable and conventional energy industry,... Continue reading The post Dolfines SAS acquires 8.2 France appeared first on NewsnReleases.
    • Fertiglobe acquires 15% Stake in EBIC for $43 million 02-Aug-2021
      AMSTERDAM, NETHERLANDS: OCI N.V. announced Fertiglobe has agreed with a KBR-led consortium (NYSE: KBR), which includes Mitsubishi, JGC and Itochu,... Continue reading The post Fertiglobe acquires 15% Stake in EBIC for $43 million appeared first on NewsnReleases.
    • SSE sells stake in Scotia Gas Networks for £1.225 billion 02-Aug-2021
      LONDON, UK: SSE Plc has agreed to sell its entire 33.3% stake in gas distribution operator Scotia Gas Networks Ltd... Continue reading The post SSE sells stake in Scotia Gas Networks for £1.225 billion appeared first on NewsnReleases.
    • Subsea 7 announces floating wind acquisition 02-Aug-2021
      LUXEMBOURG: Subsea 7 S.A. has entered into an agreement to acquire a majority interest in the equity of Nautilus Floating... Continue reading The post Subsea 7 announces floating wind acquisition appeared first on NewsnReleases.
    • Warwick, Solent, West London and Leiden to adopt Tribal’s cloud offerings 02-Aug-2021
      LONDON, UK: Tribal Group announced a series of cloud contract wins, demonstrating the attraction of the Group’s expanding range of... Continue reading The post Warwick, Solent, West London and Leiden to adopt Tribal’s cloud offerings appeared first on NewsnReleases.