KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has stepped up action against insider trading and market manipulation.
A press release, issued by the SECP on Thursday, revealed that the regulator has taken action against various parties in three separate cases of unfair market practices.
In December, the regulator issued three orders against the chief executive officer of a listed company as well as its associated company for “grave violation of fair market practices”. The CEO of the company was found indulging in insider trading of shares in connivance with the associated company.
In another instance of market abuse, the SECP imposed a fine on the director of a public limited company for involvement in insider trading in the shares of a listed company.
“The abusive activity was related to trading by the director of the public limited company prior to its announcement regarding acquisition of a listed company,” explained the official release.
The SECP also issued warning letters to two non-compliant members of the stock exchange for blank sales in addition to a warning letter issued to an individual investor for execution of wash trades.
Additionally, a notice has been served on the beneficial owner of a listed company for the recovery of Rs12.739 million, “to safeguard the interest of small investors”, cited the release.
Published in The Express Tribune, January 7th, 2011.
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