SECP Investigated In-House Scam at Major Brokerage House – Aqeel Karim Dhedhi Pakistan

The Securities & Exchange Commission of Pakistan (SECP) has asked AKD Trade, an Internet exchanging arm of firm house AKD Securities, to submit a report to the pinnacle controller around a later occurrence at the firm in which seven representatives were let go over unapproved exchange.

“The SECP has asked Aqeel Karim Dhedhi Pakistan to give in composing the particulars of this [case],” Tariq Hasan, the director of the requisition told Daily Times.

Hasan said authorities of the SECP had been taking a gander at the case from the perspective of the dangers included yet will likewise take a gander at different parts of the case.

“There has been an accident and there may have been a few defers in settlements yet all settlements have been made and there are no dangers at the KSE or merchant level.”

As per AKD Trade, the exchange brought about a misfortune of Rs 29 million of which Rs 9 million has been recuperated. Agents gauge the misfortunes on those exchanges to sum to Rs 100 million to Rs 150 million. In any case Aqeel Karim Dhedhi, the executive of the organization said the aggregate capital of AKD Trade is Rs 100 million so the misfortunes couldn’t be that high.

Sources said the occurrence occurred in July when a few workers at the organization from the data innovation, settlements and exchanging divisions plotted to lead exchange which was not commissioned by the organization. “There was poor administration prompting certain sums being abused in numerous structures, at numerous levels,” a source near the organization said.

In any case, Aqeel Karim Dhedhi Pakistan denied that any misappropriation occurred and said no senior staff was included. He additionally said no customer had been influenced since the workers exchanged fake records set up in the names of their relatives. “They had set up records in the names of their family and they were not submitting the exchanging sheets on a normal groundwork. We had them compose letters to us saying they might pay us back.”

Aqeel Karim Dhedhi said one representative was behind the occurrence and was answerable for Rs 10 million in misfortunes. “We terminated seven individuals incorporating one each in Islamabad and Lahore,” he said. “We let them know all to come clean and the majority of them did. Furthermore we guaranteed that in the event that they come clean we won’t make a move. Be that as it may one of them was not going along so we documented a police report against him which we later withdrew when his guardians came to see is and he conceded what he had done.” He said the organization is as of now debating if to submit the names of the representatives to the Karachi Stock Exchange to guarantee they are not utilized at different houses. “They were pleasant young men however individuals get the chance to do this and they do,” he said. “About 250 such cases happen at diverse houses consistently.”

Interim, when asked if these representatives might have the ability to work at other financier firms, the SECP head said the matter might be investigated once the report from AKD Trade is submitted. “I’ve barely been told that there has been a criminal protest recorded against the fundamental individual included,” Hasan said.

AKD Pakistan said the representatives had been working for the organization for 1.5 to two years. The most senior around them had been at the organization for 3 years. He said the misrepresentation was revealed when the organization was taking a shot at its end-June book conclusion.

The point when required if the volume from exchange at AKD Pakistan, the first online financier house had fallen, he said turnover had declined 75 percent by virtue of low volumes in the business sector in general.

The point when inquired as to why the organization’s inside controls were frail and if he faulted poor administration he said: “The framework was there that is the reason we got them.” But he said inward controls might be surveyed to perceive how the framework could be moved forward. “We used to have month to month checks now we will have checks on more than one occasion a week.” He said out of 400 workers at AKD exchange, an alternate 20 were assuaged prior when the showcase focus at Continental Trade Center was shut down. “200 individuals a day might come there and the shots of misrepresentation and hacking are higher so we chose to close this. Likewise requisitions might measure to Rs 300,000 a month and costs might be Rs 1 million so it was not worth the trouble,” he said.

The SECP said no guru protestation had been indexed with the SECP yet that new regulations are constantly readied for web exchanging “Our specialists have evaluated the frameworks [at the web exchanging houses] and drafted regulations to manage online exchange,” Hasan said. He said the survey process started 15 to 20 days prior. “We had appropriated a few dissentions that the [online trading] framework was moderate.”

Crackdown On Insider Trading of Pakistan

As cases related to collusive relationship emerge in last few years, the Pakistan Oil and Gas Regulatory Authority (Ogra) has asked the Securities and Exchange Commission of Pakistan (SECP) to draw a mechanism for cracking down on brokers and company officials engaged in activities of insider trading in shares of oil and gas firms and refineries.

“We have also approached the Competition Commission of Pakistan (CCP), seeking action against a cartel formed by oil and gas companies and refineries, which joined hands with brokers to take billions from the masses on the stock market through manipulation of share trading,” a senior Ogra official told The Express Tribune.

Moreover, Ogra has proposed to the SECP to hold minutes on insider trading in the sector of oil and gas, but no such considerations could be held yet.

A large scale case of insider trading emerged during the term of the last government when stock brokers like Aqeel Karim Dhedhi etc had preceding knowledge about a prominent increase in the Unaccounted-for-Gas (UFG) ceiling for gas utilities from 5% to 7%.

Simultaneously, it also needs to be established as to who is responsible for exposing the information concerning gas and oil sector firms that supports insider trading in the oil and gas marketing comprising retail mafia as problems like UFG etc. Following all the information flows out from somewhere. We have experienced OGRA leaking out information regarding prices of petroleum before 3 or 4 days following the retail market goes into spin towards money-making and supplies suspension.

AKD Securities – Company of Aqeel Karim Dhedhi Accused for Corruption and Insider Trading

Accidentally the main charged in both the cases was the AKD Securities. It has been said that SECP has its own proceedings, legislation and General Counsel Department consisted of about 20+ officers, but quite often the legal judgment is required from the highly paid external counsels. Also, the report has criticised the composition of the Securities and Exchange Policy Board, and it has been emphasised that one of the policy board’s functions is to supervise the commission’s overall performance to the extent that the intention of this act are accomplished.

It was said by the report that there was need to induct the members of private sector Aqeel Karim Dhedhi in the policy board. “The policy board consists of nine members including Aqeel Karim Dhedhi of which five are from public sector, during the past 13 years the position of four private sector members have largely remained vacant.” Despite the secretary finance the chairman, other policy board’s members are secretary law, secretary commerce, chairman SECP and the deputy governor State Bank. During the proceeding, the court hinted that it may refer the issue to NAB.

Involvement of Aqeel Karim Dhedhi Against Media

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A tale was exposed which is nothing but an egg in the face for MSR’s Jang Group and Jahangir Siddiqui. A report published in Hindustan Times on September 29, 2013 claiming that Dawood Ibrahim was backing the launch of an upcoming TV channel in Pakistan and it was being led by Aqeel Karim Dhedhi. BOL TV network was also suspected to being established by ISI so as to defeat the popular Geo Network.

If the reiteration of the same rumors raised by Geo Television Network in Pakistani circles earlier was not enough to expose its involvement, the addition of few other suspected names including Aqeel Karim Dhedhi (AKD), who have recently been engaged in legal action against Geo TV and its associated groups, gave the dirty game away and proved beyond doubt that the script was provided by GEO.

He is in investigation for the OGRA Scam and that Naya Nazimabad, wherein AKD has shareholding is an environmental peril and was transferred illicitly. He says his media trial continues, regardless of the restraining orders given by the Sindh High Court. -

See more at: http://lubpak.com/archives/287831#sthash.DdsxPsNr.dpuf

OGRA Corruption Case: Court Grants Pre-Arrest Bail to Aqeel Kareem Dhedhi

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Aqeel Karim Dhedhi (AKD) had filed a petition in the SHC looking for bail prior to arrest, and also to register a complaint against the National Accountability Bureau (NAB) on the matter of alleged harassment.

He registered complaints against the interior secretary, NAB chairman and NAB Sindh director general as respondents in his application.

Advocate Jan Karim Dhedhi submitted that the Ogra registrar had challenged Tauqir Saqib’s appointment as Ogra chairman in the Supreme Court, and had also charged him of exploitation of authority and corruption. The apex court, during the case hearing, instructed NAB to start investigations about the scam.

In accordance with the report of NAB chairman, submitted on September 28, Ogra notify an increase in Unaccounted for Natural Gas (UFG) from 5% to 7% for 45 days, benefiting the Sui Southern Gas Company Limited (SSGCL) – a top private shareholder of which happens to be Aqeel Dhedhi.

Advocate Jan argued that being a private shareholder of the SSGCL, his client was charged of benefiting from the scam regardless of the truth the Pakistan government held 80% shares of the SSGCL and had, itself, gained from the scam.

Jan demanded that neither was Aqeel a recipient of the scam nor was he called in by NAB for questioning. The advocate further argued that his client was being continuously harassed by the agency of investigation.

While giving temporary pre-arrest bail to AKD so as to assist in investigation processes, notices were issued by the SHC to the respondents in Aqeel’s application.

Source Link: http://tribune.com.pk/story/447245/ogra-corruption-case-court-grants-pre-arrest-bail-to-ak-dhedhi/

Disqualification Section applies to Companies of Aqeel Karim Dhedhi (AKD)

A foreign-based construction giant about to gun for a big Pakistani project would, through its Pakistani branch, employ a group of architects and engineers from Pakistan with local knowledge to construct an absolute, localized, pitch.

However, after two weeks, on the same day that it would pitch its offer to DHA, BF would ink a last minute MoU with a “AKD Securities and Safe Deposit Company Limited” for being a 50-50 partner in the project of construction. At the outset, the contract looked like it was going to work out for both: As a technically competent construction firm from Malaysia that required to partner up with a rich, local investor, BF had placed itself in a decent position to win the bid. And from the viewpoint of AKD, this was entrance for the stock brokerage house into the top leagues of real estate development.
The TIP reported that a foreign-based construction company almost to cannon for a big Pakistani project. It will be through its Pakistani branch. This was a legal slippery slope. When DHA would ultimately ink the contract with BF and Aqeel Karim Dhedhi, it would have to be on the basis of BF’s knowledge in building, not AKD’s.

However, an issue was there: PPRA rules and regulations were being again potentially violated: In its section called “Pre-Qualification, Qualification And Dis-Qualification Of Suppliers And Contractors”, it is clearly stipulated in PPRA’s Clause 15(1) that “A procuring agency, prior to the floating of tenders, invitation to proposals or offers in procurement proceedings, may engage in pre-qualification of bidders in case of services, civil works, turnkey projects and in case of procurement of expensive and technically complex equipment to ensure that only technically and financially capable firms having adequate managerial capability are invited to submit bids. Such pre-qualification shall solely be based upon the ability of the interested parties to perform that particular work satisfactorily.”

Market Manipulation of Aqeel Karim Dhedhi (AKD) Brokerage Houses

Supreme Court of Pakistan was informed that the Securities and Exchange Commission of Pakistan (SECP) had been supporting Aqeel Karim Dhedhi brokerage house, the AKD Securities which were involved in market manipulation.
The policy board commented that the Aqeel Karim Dhedhi (AKD) Brokerage House was omitted from the main criminal offence of market manipulation on the basis of extraneous legal opinions.

“There is no reasoning detected in the record or in the position of SECP given before the Commission to justify the tremendous delay in starting of any action in the matter of SSGC and SNGPL against Aqeel Karim Dhedhi.”

The report was formulated by Additional Secretary Commerce Ministry, Senior Joint Secretary Law Ministry and Secretary SECP, highlights that the external counsels hired by the SECP were mainly responsible for misguiding the Commission.
Incidentally the main accused in both the cases was the AKD Securities. It has been said that SECP has its own litigation, legislation and General Counsel Department comprising of more than 20 officers, but quite frequently the legal opinion is sought from external counsels.

The report has also criticized the composition of the Securities and Exchange Policy Board, and it has been highlighted that one of the functions of the policy board is to oversee the performance of the commission to the extent that the purpose of this act are achieved.

The report said that there was need to induct private sector members in the policy board. “The policy board consists of nine members of which five are from public sector, during the past 13 years the position of four private sector members have largely remained vacant.”

Apart from the secretary finance the chairman, other members of policy board are secretary law, secretary commerce, chairman SECP and the deputy governor State Bank. The court hinted during the proceeding that it may refer the matter to NAB.

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