State Bank of Pakistan logo. PHOTO: FILE
Transparency International Pakistan (TIP), in a letter to Governor of the State Bank of Pakistan (SBP) Yaseen Anwar, has highlighted a such serious allegation of insider trading against the Jehangir Siddiqui Bank Limited (JSBL) and Jehangir Siddiqui Group of Companies (JS Group) and has accused SBP officials of collusion in protecting the bank.
In documents available with The Express Tribune, TIP advisor Syed Adil Gilani has asked the acting governor of the country’s central bank to take immediate action against SBP officials accused of protecting the JSBL. The letter states that despite confirmation from the Securities and Exchange Commission of Pakistan (SECP) of illegal insider trading by JSBL in the shares of Azgard Nine Limited resulting in price manipulation of shares, the SBP has taken no action against the accused bank for breaking SBP banking regulations.
“SECP has confirmed that allegations (against JSBL) are correct, and has started taking action against the individuals and companies involved in this illegal act, filing criminal cases in a court of law in April 2013. Yet, the SBP, which should have initiated action against JSBL in 2009, is still sitting on this illegal act,” claims the letter.
Quoting instances of when JSBL sold shares of Azgard Nine Limited at inflated prices to its sister JS Group concerns in July 2007 and April 2008, the letter states that as a result “Azgard shares of JS Group in Agritech Limited, were sold at double the market price to the National Bank of Pakistan in October 2012, causing a loss of Rs1.75 billion to national exchequer.”
Published in The Express Tribune, May 14th, 2013.
Correction: An earlier version of the article incorrectly called Yaseen Anwar the "acting governor" of SBP. The error has been rectified.
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What about financing provided by JS Bank in CFS market for Azgard Nine, JSCL and other group companies to facilitate manipulation in share prices.
Also SECP should have forwarded to SBP the substantial cash withdrawals reported in the inquiry report for investigation into money laundering
Very serious allegations. Ali Siddiqui and Jahangir Siddiqui should have done in better way. I understand they have many CSR activities also to perform while doing business.
God bless JS Bank.
Yaseen Anwar isn't acting Governor anymore.
please correct Yassen Anwar is the Governor not the acting..