SECP Files Complaint Against Two Individuals On Violation Of Trading

The Security and Exchange Commission of Pakistan (SECP) has filed complaint against two individuals on violations of trading

ISLAMABAD, (UrduPoint / Pakistan Point News - 17th Apr, 2024) The Security and Exchange Commission of Pakistan (SECP) has filed complaint against two individuals on violations of trading.

Based on an investigation conducted under the Securities Act, 2015, the SECP has filed a criminal complaint against two individuals who were found involved in front-running equity trading by a large institutional investor during the period from October 1, 2021, to December 31, 2021, said a press release issued here on Wednesday.

The criminal complaint number 15 of 2024, dated April 8, 2024, has been filed at the Special Court (Offenses in Banks), Karachi. The analysis of order-level data by SECP investigation team revealed that a day trader, with the active connivance of an investment officer of the institutional investor, purchased shares before the placement of buy orders by the institutional investor and subsequently sold those shares to the institutional investor.

The practice continued for a few months, the press release said. A substantial portion of the trades executed by the day trader during this period matched with trades executed by institutional investor as counter-party.

This resulted in losses to the institutional investor and gains to the day trader. There is a strong evidence that the investment officer of the institutional investor was actively colluding with the day trader.

SECP is committed to ensure fairness and transparency in the capital market to enhance investors’ confidence, the press release added.