Capital Trust Securities slapped with Rs.500,000 penalty

The Securities and Exchange Commission (SEC) has imposed an administrative penalty of Rs.500,000 on Capital Trust Securities (Pvt.) Ltd, with regard to making recommendations to clients without a basis with in respect of the shares of Softlogic Life Insurance PLC and causing negative impact on its price.

The SEC said the penalty was imposed on Capital Trust Securities in terms of Section 178 (1) (ii) of the SEC Act, for having contravened Section 112 (1) of the SEC Act and was directed in terms of Section 178 (1) (i) of the SEC Act to comply and observe practices relating to conduct of its activities as a stockbroker licensed by the SEC.

“The above administrative penalty was imposed in terms of the decision of the members of the commission taken at its 472nd meeting held on September 14, 2022, after having considered the procedures followed by DSA with regard to making recommendations to clients without a basis with in respect of the shares of Softlogic Life Insurance PLC and causing negative impact on its price,” the SEC said.