Frequently Asked Questions
For Lodging Complaints
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN
FREQUENTLY ASKED QUESTIONS
For Lodging Complaints
NIC Building, 63 Jinnah Avenue, Islamabad, Pakistan
Tel: 051-9207091-4, UAN: 111 117 327
Fax: 051-9204915
Website: www.secp.gov.pk
e-mail: enquiries@secp.gov.pk
FAQs for Lodging Complaints against Stock Exchange
Members with the Securities and Exchange Commission of Pakistan
("SECP")
Disclaimer:
The information contained herein is subject to change without prior
notice. While every effort is made to ensure accuracy and completeness of
information contained, the Commission makes no guarantee and assumes no
liability for any errors or omissions of the information. No one can use the
Information for any claim, demand or cause of action.
Contents
Why (Ile a complaint with SECP?
How does the client know if he/she has a case
against Stock Exchange Member?
What are the different ways to handle a problem with
Stock Exchange Member?
What are different forums available for pursuing a
claim against Stock Exchange Members?
What is Arbitration?
Who are the persons who can act as Arbitrators?
How Is an Arbitrator appointed?
Who can avail the facility of Arbitration on the
Exchange?
What is the period for filing an application for
Arbitration in the event of there being a claim, difference or dispute?
What is the process for filing an application for
Arbitration with Exchanges?
How Is an Award made by the Sole Arbitrator/Panel of
Arbitrators?
Is there any appeal provision for arbitration at the
Exchanges?
Can the sole arbitrator or Panel of Arbitrators
grant an adjournment of hearing?
Can the parties enter Into
settlement after filing an application for Arbitration?
What is the procedure for filing a complaint with
SECP?
What documents does the client need to support
his/her claim?
What are the costs associated for lodging a
complaint with SECP?
What happens after the client sends Information to
the SECP?
Is there any Appeal provision against the Order?
How long does it take before a complaint Is decided?
Why file a complaint with SECP?
The receipt of complaints enables SECP to identify
trading violations, which could impact the Investor confidence or affect
fairness In the stock market. Using complaint
Information the SECP can identify the weak areas in relevant regulations or in
their compliance and make necessary arrangements for fixing the same.
2. How does the client know if he/she has a case
against Stock Exchange Member?
Just because the client has lost money while dealing
In securities doesn't mean that he/she has a case
against the Member. The Financial markets have always gone through periodic
down turns and upturns and these fluctuations are not always the fault of
Member. However, It is the responsibility of a Member
to Invest money according to the client's Instructions. There are certain
malpractices and delays against which an Investor can lodge a complaint such
as:
Unauthorized transfer/movement of shares
Non-supply of statements of account
Non-supply of trade confirmations within 24 hours
Overcharged Commission
Failure to execute investors' instructions/orders
Suspension of payment
Non-Delivery of Securities
Delay In disposition of matters referred to In arbitration and appeals against the award of arbitration.
Non Implementation of Award announced by panel of arbitrators and appellate
bench of the Exchange. Conflict of Interest In reference to the panel of
arbitrators and panel against the award of arbitrators.
3. What are the different ways to handle a problem
with Stock Exchange Member?
4. What are different forums available for pursuing
a claim against Stock Exchange Members?
Amicable Settlement: Although the client has the
recourse to approach the relevant Stock Exchange, SECP or the Courts for
lodging complaint, It is advised that the
complaint/problem should first be taken up directly with the Member.
Taking up the matter with relevant Stock Exchange:
The client also has the alternative of taking up his/her complaint with the
management of the concerned stock exchange. All the stock exchanges shall
handle the complaints in accordance with their regulations. Regulations are
available on the webpage of the Commission i.e.
www.secn.gov.ok and of the Exchanges i.e. www.kse.com.pk www.lahorestock.com
www.ise.com.pk
SECP: The client can also lodge his/her complaint
with the Investor Complaint Wing ("ICW") which has been setup at SECP
to ensure that grievances/complaints of the general public are heard and
redressed, in a quick and efficient manner. The Investor can file his/her
complaint with the SECP against Stock Exchange Members on the prescribed
Complaint Registration Form ( CRF") which is available, free of cost in
the offices of Stock Exchanges and the Commission Including the Company
Registration offices ("CROs").CRF may be downloaded from the official
website of SECP www.secp.gov.pk.
Civil Courts: The client can also file his/her
complaint with the Civil Courts.
5. What Is Arbitration?
Arbitration is an alternative dispute resolution
mechanism provided by the Exchanges for resolution of complaints lodged by
Investors and members of the exchange. Arbitration is carried out in accordance
to the procedure laid down in General Regulation of the Exchanges. These regulations
are available at webpage of the exchange ie. www.kse.com.pk www.lahorestock.com www.ise.com.pk
6. Who are the persons who can act as Arbitrators?
7. Howls an Arbitrator appointed?
The Arbitrators are Members and management of the
Exchange and Non-Member directors of the Exchange. The specific requirement for
the appointment of arbitrators and the procedure for appointment of arbitrators
Is mentioned in the General Regulations of the
Exchanges available at their web pages.
8. Who can avail the facility of Arbitration on the
Exchange?
The facility of arbitration on the Exchange can be
availed by:
a) Investors who have dealt on the Exchange through
their Members dealing in Securities.
b) Investors who have dealt on the Exchange through
registered agents of the Member dealing in securities.
b) Members who have a claim, dispute or difference
with another trading member or a constituent.
9. What Is the period for
filing an application forArbitration in the event of
there being a claim, difference or dispute?
An application for arbitration has to be filed in
accordance with the arbitration procedure laid down in General Regulations of
the Exchange, which at present is 1 year from the date the dispute arises.
10. What Is the process for
filing an application for Arbitration with Exchanges?
The Investor may file his/her complaint against the
Stock Exchange Members with the concerned Exchange. The procedure for
arbitration is laid down in General Regulation of the Exchanges and the same
are available on web page of the Exchange.
11. How is an Award made by the Sole
Arbitrator/Panel of Arbitrators?
If both parties to the dispute are present at the
appointed time and place the arbitrators may hear the reference and announce
the award. If the party against whom the complaint is made is not present the
arbitrators may hear and decide the dispute ex-parte. All claims referred to
the panel of arbitrators are resolved by a majority.
12. is there any appeal
provision for arbitration at the Exchanges?
Yes, there is an appeal provision for arbitration at
the Exchanges. According to KSE and ISE General Rules and Regulations any party
to a dispute dissatisfied with any award of the Managing Director/his appointed
nominee may appeal to the Advisory and Arbitration Committee against such award
within seven days of receipt of such award and any party to dispute
dissatisfied with the award of the Panel of Arbitrators may appeal to the Board
against such award within seven days of the receipt of such award.
According to General Regulations of the Exchanges,
if any party to a dispute is dissatisfied with any award of the Managing
Director/his appointed nominee or with the award of the Panel of Arbitrators
may appeal to the Board against such award within the specified time frame.
Complete procedure for appeal against arbitration award is laid down in General
Regulations of the Exchanges, available at their web pages
13. Can the sole arbitrator or Panel of Arbitrators
grant an adjournment of hearing ?
Yes, a sole Arbitrator or Panel of Arbitrators may
grant an adjournment of hearing.
14. Can the parties enter into settlement after
filing an application for Arbitration?
Yes, even If after the appointment of an arbitrator,
the parties settle the dispute amicably then the arbitrator will record the
settlement of the dispute in the form of an arbitration award on agreed terms.
15. What is the procedure for filing a complaint
with SECP?
In case of complaint against the Exchange and/or the
broker/brokerage house the Investor Complaints Wing at the Securities and
Exchange Commission of Pakistan can be approached at the following address:
Investors' Complaints Wing, Securities Market
Division Securities and Exchange Commission of Pakistan, 9th Floor, N.I.C.
Building, Jinnah Avenue Blue Area, Islamabad Tel: (051)9207091-94 Fax : ( 051)9218595
Complaint Registration Form Is
available on the website of the Commission (I.e. www.secp.gov.pk). Investors
having complaint are required to fill the form with complete information and
forward duly signed complaint registration form along with all necessary
documents to the Commission's address.
16. What documents does the client need to support
his/her claim?
Following documents are required to support the
claim against the Members. In case the client is not able to provide any of the
said documents reason for not submitting the same must be provided to the
concerned authority.
1. Copy of CNIC (in case of companies MC of the
authorized representative)
2. Documents supporting your claim.
17. What are the costs associated for lodging a
complaint with SECP?
The SECP does not charge anything for handling the
complaints lodged by the Investors against the Stock Exchange Member(s).
18. What happens after the client sends information
to the SECP?
The complaint upon receipt shall be Immediately acknowledged. If you do not receive
acknowledgement even after 5 working days of your sending the complaint, ask
for the status of complaint from Investor Complaints Wing at the Commission.
You shall be Informed about the status of complaint In
a timely manner.
19. Is there any Appeal provision against the Order?
Any party to the dispute/claim still aggrieved has
the option of filing an appeal against the Commission's Order. The client can
file an appeal under Section 33 of the SECP Act, 1997 before the Appellate
Bench of the Commission. The Appellate Bench is vested with the powers to
review the Order passed by a Commissioner or Executive Director or DI rector of
SECP.
20. How long does It take
before a complaint Is decided?
There is no fixed time limit for the completion of
process. Passing of judgment in a particular case depends on a number of
factors, which include but not limited to nature of complaint, size of the
claim, availability of documentary evidence, and cooperation of parties etc.