The Securities and Exchange Commission of Pakistan (SECP) on Friday filed another criminal complaint against CEO of Cedar Capital (Private) Limited (CCPL) and his two prominent clients for manipulating the share price of Pak Electron Limited (PEL) at Pakistan Stock Exchange.
The case was filed in the court of the sessions judge Karachi on Friday. The SECP’s investigation revealed that the clients of CCPL fraudulently induced the potential market investor for trading in the shares of PEL by manipulating the price and volume of shares, creating an artificial market. The investigation report covers two review periods, starting from April 1, 2013, to April 16, 2013, and the second review period spans from May 17, 2013, to July 8, 2013.
The accused, as a part of their scheme, traded a volume of 13,433,500 PEL shares, constituting 18 per cent of the total trading volume during the first period. During the second period, the accused traded 19,416,000 shares of PEL, which comprises 22 per cent of the trading volume traded during the second period. While taking such a position in the shares, the group/co-accused generated a substantial amount of volume each day. Furthermore, when they entered the ready market, the volume generated by the group was more significant as compared to the volume of the market as a whole.
The accused are in complete violation of the settled principle of law, as well as provisions of Section 17(a) and 17(e) (ii) (v) of the 1969 Securities and Exchange Ordinance and all enabling provisions.
