SECP to initiate action against financial pundits online

The Securities and Exchange Commission of Pakistan (SECP) has taken the decision to take stern action against people who act as financial pundits on social media and comment about stock markets performance online. This was stated by Yasir Manzoor, head of the SECP’s Market Surveillance, Supervision and Enforcement Department while talking on the sidelines of a workshop on insider trading and market manipulation.

According to Manzoor giving misleading statements through social media is also a form of market manipulation. He said the SECP is committed to keeping an eye on such actions and a record of 33 such links and pages has been handed over to the Federal Investigation Agency (FIA).

He said it is the prerogative of the regulator to ensure that they control market manipulation and also protect the interest of investors. Mr Manzoor mentioned that the regulator undergoes massive criticism in case if it doesn’t act in the event of investors facing losses or if the stock market crashes.

He said that stern action would be initiated against those brokerage houses indulging in spoofing activities like placing and cancellation of orders to generate a false impression of trading activity. Mr Manzoor also added that that SECP has registered seven criminal complaints this year with regards to market abuses and two criminal complaints have also been filed against senior bank representatives for trying to book profits via insider trading.