SECP Files Criminal Case Over Insider Trading Charges
Staff Report
Islamabad– As part of its enforcement mandate, the Securities and Exchange Commission of Pakistan (SECP) has filed a criminal complaint against the Company Secretary of a listed company, four of his close relatives, and a private limited company for alleged involvement in insider trading.
The SECP launched an investigation under the Securities Act, 2015, and filed the complaint at the Special Court (Offenses in Banks), Sindh at Karachi. The Court has admitted Complaint No. 14 of 2025.CCP Finds Alleged Ties Between Fertilizer Manufacturers and Dealers
Currency Converter
The Commission observed that certain clients accumulated shares of a listed company from August 22, 2023, to October 12, 2023—during a period when material information regarding share buy-back by sponsors and delisting was not yet public. This information was considered “inside information” under the Securities Act, 2015.
The SECP’s findings revealed that the Company Secretary had access to price-sensitive information from August 11, 2023, due to his official role and his involvement in the delisting process. He allegedly shared this confidential, non-public information with his close relatives and the CEO of an associated company. He also provided funds to his relatives to acquire the listed company’s shares and benefitted from the illicit gains made through trades based on this inside information.
The accused parties accumulated shares before the public announcement, and following the disclosure—which led to a significant price surge—they sold the shares to the general public, generating unlawful gains of Rs. 338.085 million. None of the accused had a trading history in the company’s shares prior to this activity.
Under the Securities Act, 2015, insider trading is a criminal offense and may result in imprisonment for up to three years or a fine of up to Rs. 200 million, or three times the illicit gain—whichever is higher.
The SECP reiterated its commitment to enforcing strict supervision and ensuring the integrity of capital markets to protect investors from market misconduct.
