The Securities and Exchange Commission of Pakistan (SECP) approved sending a reference to the Federal Investigation Agency (FIA) concerning the Bagsara Securities case. The inquiry determined that investors' shares were pledged and transferred without obtaining the necessary consent.
Total outstanding investor claims in the Bagsara Securities matter amount to Rs. 48.9 million. Furthermore, the investigation identified 333 investors whose verified claims total Rs. 145.5 million.
Between 2007 and 2010, customers' shares valued at over Rs. 176.2 million were pledged. To date, Rs. 96.57 million has been disbursed to investors from the identified claims.
Bagasra Securities (Private) Limited previously operated as a corporate member of the Karachi Stock Exchange and held registration with the SECP as a broker. The Karachi Stock Exchange declared Bagasra a defaulter in November 2008.
The firm also failed to settle a final loss amounting to approximately Rs. 51.4 million. In 2007, the SECP commenced enforcement proceedings against Bagasra due to violations of futures trading regulations.
