SECP shares 27 insider trading cases with FIA
The Securities and Exchange Commission of Pakistan (SECP) has disclosed information about 27 instances of insider trading and market manipulation to the Federal Investigation Agency (FIA). The SECP, in response to inquiries regarding FIA’s investigation into capital market participants, clarified that it has been actively probing cases of insider trading and market manipulation. As a result of these investigations, the SECP has filed criminal complaints in accordance with the Securities Act, 2015.
The FIA, under the Anti-Money Laundering Act, 2010 (AML Act, 2010), is responsible for investigating money laundering activities related to predicate offenses, including insider trading and market manipulation. Insider trading and market manipulation fall within the regulatory purview of the SECP as the only predicate offense specified by the AML Act, 2010.
Upon the FIA’s request, the SECP shared details of all cases of insider trading and market abuse for parallel investigations under the AML Act, 2010. In adherence to the AML Act, 2010, the SECP provided information on 27 completed investigations where criminal complaints had been filed in relevant courts since 2008. These details were shared with the FIA in September 2024, in accordance with the Anti-Money Laundering (Referral) Rules, 2021.
It is important to note that the information shared with the FIA does not implicate the companies or brokerage houses involved in the manipulated trading of stock shares. Rather, the information specifically identifies individuals engaged in insider trading and market manipulation as outlined in the Securities Act, 2015.
The SECP emphasized that the referral of cases aims to target individuals found to be complicit in insider trading and market manipulation, rather than attributing blame to the companies or brokerage firms associated with the trading activities. The SECP underscored that the details of these cases are part of the judicial record and are accessible to any legal authority or individual upon request.
In conclusion, the collaborative efforts between the SECP and the FIA reflect a commitment to combating illegal practices in the capital market. By sharing pertinent information and coordinating investigations, both regulatory bodies are working towards maintaining the integrity and transparency of the financial system in Pakistan.