The Securities and Exchange Commission of Pakistan (SECP) has taken decisive action against insider trading by filing a criminal complaint against the Company Secretary of a listed company, four of his relatives, and a private firm.
According to the SECP, the accused were involved in accumulating shares between August and October 2023, using non-public information about an upcoming buy-back and delisting of the company.
The Company Secretary, who had access to this confidential information, allegedly shared the details with his relatives and provided them with funds to trade shares. Once the news became public, the accused sold the shares, reaping illegal profits amounting to Rs. 338.085 million.
The case, which has been admitted by the Special Court (Offenses in Banks) in Sindh, marks a significant step in the regulator’s efforts to curb financial misconduct.
The SECP has highlighted that such actions constitute a serious violation of the Securities Act, 2015. Under the law, insider trading is punishable by up to three years of imprisonment, a fine of Rs. 200 million, or a penalty equivalent to three times the illicit profit made.
Editorial & Legal Practice Group
Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.
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Jurisdiction: Pakistan