FIA looking into previous insider trading cases but not starting new inquiries

On January 29, 2025, it was reported that the Federal Investigation Agency (FIA) had made a formal request to the Securities and Exchange Commission of Pakistan (SECP) to share information on completed investigations regarding cases of insider trading and market manipulation. This request is part of an ongoing review related to the Anti-Money Laundering (AML) Act of 2010.

Sources familiar with the matter disclosed that the cases under scrutiny dated back until 2021 and had already undergone the necessary legal procedures. There were no new investigations or regulatory actions instigated as a result of this request. It is important to note that the cases referenced in the request do not implicate the companies or brokerage firms involved in the trading activities but rather focus on individuals implicated in insider trading and market manipulation activities as delineated in the Securities Act of 2015.

The SECP has been rigorously investigating instances of misconduct in the form of insider trading and market manipulation and has subsequently filed criminal complaints in court as per the Securities Act of 2015. Meanwhile, the FIA is mandated to probe money laundering activities linked to predicate offenses outlined in the AML Act of 2010, with insider trading and market manipulation being categorized as such offenses.

It should be emphasized that the details of these cases are within the public domain, as they form part of the judicial record and can be accessed by any authorized body or individual through the appropriate legal channels. Subsequently, a compilation of 27 cases related to insider trading and market manipulation was shared with the FIA in accordance with the Anti-Money Laundering (Referral) Rules of 2021.

In conclusion, the collaborative efforts between the SECP and FIA demonstrate a commitment to upholding the integrity and transparency of the financial markets in Pakistan. As regulatory bodies continue to enforce compliance with established laws and regulations, the aim is to foster a fair and equitable trading environment for all stakeholders involved.