ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has filed a criminal complaint against the Company Secretary of a listed company, his four close relatives, and a private limited company for their alleged involvement in insider trading. The case, based on investigations under the Securities Act, 2015, has been filed at the Special Court (Offenses in Banks), Sindh, Karachi.
According to the SECP, certain individuals acquired shares of a listed company between August 22, 2023, and October 12, 2023, using non-public information about the company’s buy-back of shares and its planned delisting. The SECP considers this insider information under the Securities Act, 2015, and the trading activity raised concerns of insider trading.
The investigation revealed that the Company Secretary had access to sensitive price-influencing information due to his position and was involved in the delisting process. He allegedly shared this information with his close relatives and the CEO of an associated company, and facilitated their purchase of shares, which led to illicit profits when the prices surged after public disclosure.
The accused parties sold the shares after the public announcement, earning illicit gains totaling Rs. 338.085 million. None of the accused had a prior history of trading in the shares of the listed company.
Under the Securities Act, 2015, insider trading is a criminal offense punishable by up to three years in prison or a fine of up to Rs. 200 million, or three times the illicit gain.
