But a Securities and Futures Commission (SFC) spokesman denied the timing of the reprimand was meant to influence the legislative race. 'The commission's disciplinary action is free from politics,' he said.

Former legislator Chim Pui-chung, who spent 12 months in prison for plotting to forge share transfer documents, told the South China Morning Post he definitely planned to enter the race. He held the seat between 1991 and 1998.

Meanwhile, incumbent Henry Wu King-cheong plans to seek re-election, while Fung Chi-kin, president of the Chinese Gold and Silver Exchange Society, is widely believed to be a contender though he has not yet decided.

Mr Bokhary yesterday said he had no intention of running for the seat. 'I need to spend time with my clients and play golf. The election is not my agenda now,' he said.

The SFC said its reprimand was the result of an inquiry which found insufficient internal controls and inadequate record keeping at the brokerage run by Mr Bokhary. The firm also failed to adequately supervise and monitor the work of its employees, the agency said.

But the commission said Bokhary Securities had taken remedial steps to improve its internal controls.

Mr Bokhary did not want to comment on the SFC reprimand.

The businessman, a Hong Kong resident since shortly after his birth in Pakistan, can speak fluent Cantonese and has been at the helm of his stock brokerage for 32 years.

He entered the public eye in 1995 after he and supporters contested annual elections to the stock exchange ruling council, taking on candidates led by Choi Chen Po-sum.

Both Mr Bokhary and Mrs Choi won their seats that year.

He was a member of the ruling council until 2000, when the stock exchange merged with the futures exchange and three clearing houses to form Hong Kong Exchanges and Clearing.

During his tenure, Mr Bokhary was a vocal critic of many market reform plans, such as the scrapping of minimum commissions, which hurt small brokerages, and the proposal to extend trading hours. His outspoken style made him a controversial figure in the brokerage community.

In 1998, he announced his candidacy for the Legislative Council just one month before election day and ran against Mr Chim, Mr Fung and Mr Wu. Mr Chim won but was sentenced to three years in prison a month later, a term later reduced to a year.

He was expelled from Legco for three years and Mr Fung replaced him in a by-election as the sole candidate. Neither Mr Wu nor Mr Bokhary joined the race.

Alan Linning, executive director of enforcement at the SFC, said management at brokerages must properly supervise and monitor the work of employees.