CmaBoardReleases
Title: Announcement Regarding the Issuance of Disciplinary Board Resolution
Announcement Regarding the Issuance of Disciplinary Board Resolution
The Capital Markets Authority announces the issuance of a Disciplinary Board Resolution passed in its meeting held on Thursday 5/11/2015 on violation No. (38/2015 – Disciplinary Board) and (66/ 2015 Authority) filed against: 1) Global Investment House Company. 2) Ashraf Ibrahim Nelekar
That is by "warning the first violator of the importance of complying with the controls of managing portfolios of others".
This punishment is due to, the Company's violation of the provisions of Article (122/1) (a,b) of Law No. 7 of 2010 regarding the Establishment of the Capital Markets Authority and Article 3 of the Portfolio's contract. The Company also violated Article (215) of the Executive Bylaws of CMA's Law and Articles (8,10) of the Market Committee's Resolution No. 5 of 2005 regarding the Controls of Managing and Supervising the Portfolios of Others. The Company executed through the second defendant, who occupies the position of the Deputy Director of Operations, a transaction agreed upon beforehand at the Stock Exchange. Moreover, the Company did not segregate between its assets and the client's assets and did not indicate the same in its concerned registers. Additionally, it did not issue stock certificates under the client's name.
In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these rules in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.