Dealing with the violation case of two brokerage companies – Tejaratnews
The head of the Financial Institutional Violations Department of the Stock Exchange Organization said: After receiving the violation report of two brokerage companies from the management of supervision of brokers, the handling of the said cases was placed on the agenda.
According to Tejarat News, the head of the Department of Investigating Institutional Financial Violations of the Securities and Exchange Organization stated: Two brokerage companies active in the capital market, contrary to the regulations and without verifying the sufficiency of funds in the customers’ operating accounts and through the verification of shares and registration of credit allocation, in the form of Somehow, in their account, they took the accrual position of the sale of option contracts with significant amounts for customers, which, considering the risk of default of transactions by the customers, it was possible that irreparable losses were imposed on the mentioned brokerage companies and the effects of this were impaired. to public trust, brokerage industry and capital market.
Fines for two offending brokerage companies
He added: Therefore, with the receipt of the violation report from the management of the supervision of brokers, the handling of the aforementioned cases was put on the agenda, and currently it has led to the issuance of a decision regarding the two aforementioned brokerage companies with a fine of 1,450,000,000 Rials. And 3,000,000,000 Rials for each of the managers according to the scope of the violation in each case and also the suspension of the license for trading derivatives based on securities. Of course, the decisions issued are preliminary and can be appealed by the convicts.
Malek Mohammadi continued: Failure to comply with laws and regulations by the persons under the supervision of the Securities and Exchange Organization, apart from leading to direct disciplinary punishments, will also bring other serious effects and consequences for the perpetrators. 36 The law of permanent orders of the country’s development programs regarding the publication of criminal and criminal records of managers of financial institutions and issuers of securities is an example of these works.
In the end, he said: According to Article 18 of the “Trading Instructions for Option Contracts in the Tehran Stock Exchange and the Iran Stock Exchange”, the broker must, at the time of receiving a buy or sell order, consider the existence of transaction costs plus the transaction value of the option contract or the security deposit. If necessary, check the client’s operational account with the broker. Also, according to the note of the same article, the broker must create a separate heading for each client in his books and ensure the adequacy of the funds in the client’s account at the time of executing the client’s orders. Article 29 of the same directive also contains verses; Order registration in the trading system depends on the presence of collateral or transaction value of the contract, as the case may be, in the client’s operational account with the broker.
Source: Senate