FIA requests information on insider trading and market manipulation cases from SECP
The Securities and Exchange Commission of Pakistan (SECP) has decided to provide the Federal Investigation Agency (FIA) with details of completed insider trading and market manipulation cases that have resulted in criminal complaints being lodged in relevant courts. The sharing of this information comes in response to the FIA’s request for access to these cases for parallel investigations under the provisions of the AML Act, 2010.
The SECP has been actively investigating instances of insider trading and market manipulation in accordance with its statutory obligations. Criminal complaints have been consistently filed in courts under the Securities Act, 2015 as a result of these investigations. While these cases do not implicate the companies or brokerage firms involved in the trading activities, they do target individuals who have engaged in activities classified as Insider Trading and market manipulation under the Securities Act, 2015.
Under the Anti-Money Laundering Act, 2010, the FIA holds the authority to investigate money laundering activities related to predicate offenses, which include Insider Trading and Market Manipulation. The sharing of information regarding these cases is intended to facilitate parallel investigations by the FIA to ensure that all aspects of illegal activities are thoroughly scrutinized and addressed.
It is crucial to note that the details of these cases are part of the public record, as they are documented as part of the judicial proceedings and are accessible to any entity or individual upon application to the appropriate courts. A comprehensive list of 27 cases involving insider trading and market manipulation has been furnished to the FIA to enable them to conduct their investigations effectively and in line with the Anti-Money Laundering (Referral) Rules, 2021.
The collaboration between the SECP and the FIA underscores the shared commitment to upholding the integrity of Pakistan’s financial markets and addressing any unlawful activities that may compromise the stability and transparency of the system. By leveraging their respective mandates and expertise, both organizations are working towards ensuring a robust regulatory framework that fosters compliance and accountability within the financial sector.
This concerted effort to combat insider trading and market manipulation sends a strong message that illegal activities will not be tolerated, and perpetrators will be held accountable for their actions. By strengthening regulatory oversight and enhancing collaboration between regulatory authorities, Pakistan aims to create a fair and transparent financial ecosystem that safeguards the interests of investors and promotes sustainable economic growth.