SECP Files Criminal Case On Charges Of Insider Trading

ISLAMABAD, (UrduPoint / Pakistan Point News - 7th Aug, 2025) 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 alleged involvement in insider trading.

The SECP reached these findings, after conducting thorough investigations under Securities Act, 2015, as part of its enforcement mandate, said a release issued here on Thursday.

The criminal complaint has been filed at the Special Court (Offenses in Banks), Sindh at Karachi and the Court has admitted the complaint No. 14 of 2025.

The Commission observed that certain clients accumulated shares of a listed company from August 22, 2023 to October 12, 2023, when material information regarding the buy-back of shares by sponsors and its delisting was not public and termed as inside information under the Securities Act, 2015 (the Act).

The accumulation of listed company’s shares by certain clients, when information was non-public, raised suspicion of insider trading, therefore, an investigation under the Act for possible violation of Insider Trading was initiated.

The Investigation findings revealed that the Company Secretary of the listed company was privy to price sensitive information from August 11, 2023 owing to his official position in the Company and was handling matters relating to delisting process.

Hence, he was termed as an insider.

He allegedly shared price sensitive confidential information which was not publicly available at that time, with his close relatives and the Chief Executive Officer of an associated company.

The Company Secretary also provided funds to his relatives for acquiring the shares of the listed company and benefited from the illicit proceeds made from the trading of shares, based on the insider information.

The accused parties accumulated the shares based on price sensitive material information provided by the Company Secretary. Following the public disclosure of material information resulting in a significant increase in share prices, the accused parties sold the accumulated shares to the general public collectively generating illicit gains amounting to Rs. 338.085 million. None of the accused had prior history of trading in the shares of the listed company.

Under the Securities Act, 2015, insider trading being a criminal offense, may lead to up-to three years imprisonment or fine not exceeding two hundred million rupees or three times the illicit gain.

SECP is committed to take effective supervision and enforcement actions to ensure the integrity of the capital market and protect investors from misconduct.