SECP bans 16 companies from forex business

ISLAMABAD (September 24 2003): The Securities and Exchange Commission of Pakistan (SECP), in order to eliminate illegal activities of 16 so-called forex companies, has prohibited them to deal in any security with immediate effect.

Harvest Toprworth International has been banned from dealing securities under Section 20 of the Securities and Exchange Ordinance 1969 to effect dealings in any security with immediate effect.

The other 15 have been prevented from dealing in such business under Section 5-A and Section 17 of the Securities and Exchange Ordinance, says an SECP press release.

The said company has further been called upon to show cause as to why criminal proceedings should not be initiated against its partners.

Furthermore, the SECP has appointed an audit firm, Fazal Mehmood and Company, for the system audit of Harvest Smartrend Securities (Pvt) Limited, an associated company of Harvest Group which is a member of Lahore Stock Exchange (Guarantee) Limited.

The auditors have been asked to submit their report within 30 days with respect to dealings of the Harvest Smartrend Securities (Pvt) Limited in forex business and the scope and extent of its unauthorised activities.

The terms of reference of the said audit also include examination and review of inter-group transactions/activities of Harvest Smartrend Securities (Pvt) Limited viz-a-viz its dealings in foreign securities.

The Harvest Group apparently consists of Harvest Smartrend Securities (Pvt) Limited, Harvest Topworth International, P.T. Polindo Bauna, Topworth Equity (Pvt) Limited and Harvest International (Pvt) Ltd.

The SECP has also passed prohibitory orders and issued show-cause notices against 15 other companies/entities for carrying out unauthorised brokerage business and involvement in fraudulent activities in violation of Section 5-A and Section 17 of the Securities and Exchange Ordinance respectively.

The names of these companies/entities are:

1. Pindex Pakistan (Pvt) Limited.

2. Offshare Global Management (Pvt) Limited.

3. Fidelity Futures Management (Pvt) Limited.

4. Rouf International Advisory Services (Pvt) Limited.

5. United Brokerage Consultants (Pvt) Limited

6. Trade Station Securities (Pvt) Limited.

7. M/S. World Business Consultants (Pvt) Limited.

8. Exchangers Impex (Pvt) Limited.

9. Tycoon International (Pvt) Limited.

10. Still Rich Financial Services.

11. Leader Forex (Pvt) Limited.

12. Electus International Advisory Services.

13. Nexus Capital Management.

14. Forex Services International.

15. Uniworth (Pvt) Limited

The general public has again been warned and advised in their own interest not to invest in such illegal and unauthorised forex business and/or to deal with such companies.

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