KARACHI - The Securities and Exchange Commission of Pakistan (SECP) has imposed a penalty of Rs 2 million on the United Bank Limited (UBL) for violating the law of SECP and KSE while disclosing its financial accounts on its website before the conclusion of the board meeting. In a notice issued to KESC on Wednesday, SECP said that it had already issued a show cause notice to UBL and started hearing of the case on July 03, 2009 but the Bank was failed to comply with the provisions of the listing regulations of KSE by exercising due care, skill and diligence in conduct of its business and hence contravened the provisions of regulation 16 (1) of the listing regulation of KSE and requirement stated in the correspondence manual of KSE, made pursuant to the listing regulations. Further, the respondent misrepresented the facts to the SECP, thus violating the provision of section 18 of the ordinance. SECP also said in a judgment that the matter is disposed of in the above manner and the respondent is directed to deposit the fine in the account of the commission being maintained in the designated branches of MCB Bank not later than 30 days from the date of this order and furnish the copy of the deposit challan to the undersigned. According to details, the SECP had sent a show cause notice under section 22 of the Securities and Exchange Ordinance 1969 to UBL on June 19, 2009 on being accused of placing its financial results for the period ended December 31, 2008 on the banks website before the dissemination of the financial results to KSE while the board meeting of UBL was still in progress. However, the Bank in its written reply vide letter dated March 13, 2009 admitted that the financial results were placed inadvertently by its Information Technology Department while the board meeting was being executed for a duration of approximately ten minutes and did not contain the information pertaining to dividend and house shares. Details revealed that the meeting of the Board of Directors of UBL (Respondent) was held on March 12, 2009 in Abu Dhabi, United Arab Emirates to consider the financial results of the Bank but the financial results had been posted on UBLs official website before the announcement of the meeting. Bank in a letter sent to SECP further said that We have conducted a through internal review to ascertain the cause of this incident. It transpires that the draft of the financial closures were communicated by our Finance Division to our IT department with a view to prepare in advance so that once the financial results were announced at the end of the board meeting and after being duly notified to the concerned stock exchanges, the same could subsequently be placed on our website for the benefit of the public at large. However, unfortunately, the draft of the results was placed on our website before concluding board meeting by mistake. The results uploaded on our website contained blanks in respects of dividends and the bonus shares, as these were subject to the outcome of the board meeting. It is also pertinent to note that draft accounts only remained posted for approximately ten minutes and these were immediately removed from website as soon as this mistake was identified and pointed out. The Commission vide latter dated March 27, 2009 inquired of the exact time of posting of financial accounts on the website and their removal subsequently, and of the time of spreading the given information to KSE. The Bank informed the Commission that the results were available on its website during 12:04 pm and 02:35 pm after the conclusion of the board meeting. It was noted that the representations on two occasions made by the respondent regarding the time of placement and removal of price sensitive information on the website before its dissemination to the KESC were incongruent.