PIOC Case: Unauthorized Trade Halt via Third-Party Instruction

  • Issue: KSL instructed a third party (Babbar Hanif) to halt trades without client authorization, causing a loss of PKR 640,830. Excessive Account Exposure: Ktrade has been noted to increase account exposure limits up to 10X, significantly exceeding the allowed 2X limit, 
  • Regulatory Violations:
    • SECP: Violation of SECP Brokerage Rules (Section 12(3)) – Prohibiting unauthorized instructions.
    • NCCPL: Breach of NCCPL’s Risk Management Framework – Unauthorized trade intervention.

Loss through Unauthorized Trade Stopping: In the PIOC case, Ktrade/KSL/KASB deliberately caused a loss to their client by sending an email to Babbar Hanif (trader), instructing (Muzafar Iqbal) the cessation of trade, again without notifying the client. This unexpected intervention in the trading process highlights a serious breach of protocol and client trust. Client lost PKR 640,830

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