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.
1-A
Standard Operating Procedures (SOP) were diligently followed during the appointment of Babar Hanif.
Email and WhatsApp notifications were received from KSL as shown below.
Email received from KSL as official notification
1-B
Since required protocols were not observed in the appointment of Trader Nadeem, so KSL tried following cover up attempts.
KSL Claims
PSX meeting on 10th August 2023 KSL claimed following in TRG case.
KTrade Securities (KSL) vs. Client Claims
| # | KSL Claim | Client Response | Evidence Status | Conclusion |
|---|---|---|---|---|
| 1 | Client requested trader change | "No such request made" |  No proof provided | False Claim |
| 2 | Client reported TRG unauthorized trade | "I never claimed this" | No proof provided | False Claim |
| 3 | Client notified about trader change | "Never received notice" | No proof provided | False Claim |
KSL Requested For Evidences
On multiple platforms asked for evidences as mentioned below.
Asked for evidences in PSX meeting on 10th August 2023. Minutes are available on recorded line.
Asked for same evidences in email on Fri, Aug 11, 2023 at 10:00 AM. Copy attached
1-C
Price History Of TRG From 18th to 19th Jan 2023
TRG Price History
Day's low was 87.82 and my claim is 92.50 => Click for Source and select date range
1-D
With my personal efforts I get Nadeem's number at 3:44pm and placed order for post market at 3:52pm as it was the only chance for me.
Nadeem Confirming That He is my new trader at 3:52pm
BIPL, AKD & KSL - All in one
I might had incurred even greater losses had I not taken the actions I took.
1-E
"
KSL Confess
In the most recent hearing held on Tuesday, November 7, 2023, KSL acknowledged that they lack additional evidence to support their claim of notifying the client about his trader change. The only piece of evidence available is the screenshot that the client had previously shared with the PSX. This confession by KSL brings a new dimension to the case, highlighting a gap in their communication process and potentially affecting the course of ongoing proceedings.
KSL putting SECP's Mandatory Compliance Training under serious question.
Participants are encouraged to post their queries or responses directly in this space regarding TRG. Following each submission, our team will ensure that the content is accurately and promptly updated on the corresponding document.