Bagasra Securities case sent to FIA
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has approved a formal referral to the Federal Investigation Agency (FIA) for legal action in the Bagasra Securities case, more than 16 years after the brokerage ceased operations, with nearly Rs49 million in approved investor claims still unpaid. The approval allows a written reference under Section 41B of the SECP Act, 1997,…
The Securities and Exchange Commission of Pakistan (SECP) has formally referred the Bagasra Securities case to the Federal Investigation Agency (FIA) for legal action, over a decade after the brokerage's closure. Nearly Rs49 million in approved investor claims remain unpaid. The SECP's approval enables the FIA to take legal proceedings over allegations of unauthorized transfers and pledged shares of clients' securities.
The names of the accused - Sikandar Esmail Ahmed, Shakeela Sikandar, and Arshad Iqbal - have been forwarded to the FIA. The SECP launched an inquiry in March 2010 after receiving complaints about unauthorized dealings with clients' securities. The investigation concluded in October 2013, revealing that clients' shares had been transferred and pledged without consent to secure financing and meet exposure margins.
A total of 176.2 million shares, including clients' holdings, were pledged between July 2007 and March 2010. The brokerage's directors and liquidator failed to provide the necessary records, leaving the investigation committee to rely on information from the Central Depository Company, the Pakistan Stock Exchange, and banks.
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