The Securities and Exchange Commission of Pakistan (SECP) has approved sending a reference against M/s Bagsara Securities to the Federal Investigation Agency (FIA) for further action.
An inquiry found that the brokerage transferred and pledged the shares of investors without their consent. Shares worth more than Rs176.2 million were pledged between 2007 and 2010.
Banks and the stock exchange later sold them after the brokerage defaulted on payments. The SECP verified investments of Rs145.5 million from 333 investors.
Of this, Rs96.57 million has been paid back, leaving outstanding claims of Rs48.9 million. Investors are still owed about Rs50 million. The reference aims to advance the recovery of the investors’ dues.
