Summary Of Cases

Multiple violations of SECP, PSX, NCCPL, and CDC regulations by Ktrade Securities Limited (KSL/KASB/Ktrade).

1. TRG Case: Intentional Loss via Unilateral Trader Change

Issue: KSL changed the client’s trader without prior consent, causing a loss of PKR 451,500.

  • Regulatory Violations:

    • SECP: Violation of SECP’s Code of Conduct for Brokers (Clause 5.1.1) – Mandating client consent for material changes.

    • PSX: Breach of PSX Regulations (Rule 5.2.1) – Unfair treatment of clients.



2. PIOC Case: Unauthorized Trade Halt via Third-Party Instruction

Issue: KSL instructed a third party Muzafar Iqbal🛈 to my trader Babbar Hanif to halt trades without client authorization, causing a loss of PKR 640,830.

  • 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.


3. Unauthorized Trades in Client’s Account

  • Issue: KSL executed unauthorized trades, leading to losses of PKR 750,000.

  • Regulatory Violations:

    • SECP: Violation of SECP Act, 2015 (Section 24) – Fraudulent trading practices.

    • PSX: Breach of PSX Rule 5.4.2 – Unauthorized order execution.


4. Excessive & Unapproved Account Exposure (10X Leverage)

  • Issue: KSL increased exposure to 10X (vs. 2X allowed) without consent, causing a loss of PKR 1,200,000.

  • Regulatory Violations:

    • SECP: Violation of SECP Leverage Rules (Circular No. 11 of 2020) – Max leverage capped at 2X for retail clients.

    • NCCPL: Breach of NCCPL Exposure Limits (Rule 4.1) – Unauthorized risk exposure.


5. Trading via WhatsApp (Non-Secure Channel)

  • Issue: KSL executed trades via WhatsApp, bypassing formal channels.

  • Regulatory Violations:

    • SECP: Violation of SECP Electronic Trading Guidelines (Clause 7.2) – Mandating secure, recorded platforms.

    • PSX: Breach of PSX Rule 5.6.1 – Prohibiting informal trade instructions.


6. System Failure: Orders Stuck & Delayed Execution

  • Issue: Technical failures caused PKR 850,000 in losses due to stuck orders.

  • Regulatory Violations:

    • SECP: Violation of SECP’s Technical Standards (Circular No. 09/2017) – Mandating system reliability.

    • CDC: Breach of CDC’s Trade Settlement Rules – Failure in timely order processing.


7. Unauthorized Ready Market Trades (20 Dec 2023)

  • Issue: KSL conducted unauthorized trades in the ready market, causing losses exceeding PKR 5,000,000. Second layer of deception at Ktrade, Ali Abbas🛈 did this job.

  • Regulatory Violations:

    • SECP: Violation of SECP Act (Section 23) – Unauthorized trading.

    • PSX: Breach of PSX Rule 5.3.4 – Prohibiting unauthorized ready market trades.


Demands for Immediate Action:

  1. Full Compensation for total losses (PKR 9,342,330+) with a detailed breakdown.

  2. Regulatory Investigation into KSL’s violations under:

    • SECP’s Brokerage Rules

    • PSX’s Member Conduct Guidelines

    • NCCPL’s Risk Management Framework

    • CDC’s Settlement & Trade Policies

Hopefully, KTrade won’t become Pakistan’s next cautionary tale like Master Securities 🙏 

Comparison Between KTrade and Master Securities

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