First Insider Trading Conviction in Pakistan: Habib Metro Bank AVP Found Guilty

June 17, 2025

In a groundbreaking decision, the Sindh Special Court (Offences in Banks) has handed down the first-ever insider trading conviction in Pakistan, following a case brought by the Securities and Exchange Commission of Pakistan (SECP).

The court ruled that Zakir Hussain Somji, Assistant Vice President – Investments at Habib Metropolitan Bank Limited (HMB), had engaged in insider trading, an offense prohibited under Section 128 of the Securities Act, 2015.
SECP Chairman Akif Saeed hailed the verdict, believing it would enhance investor trust in Pakistan’s capital markets and promote long-term capital development. He expressed optimism that the ruling would set a precedent for pending cases and ongoing inquiries into insider trading in Pakistan.
The case originated from SECP’s scrutiny of suspicious transactions flagged through the Karachi Automated Trading System (KATS) between January 1, 2014, and February 2, 2016. Investigations revealed that Somji had utilized confidential information on HMB’s investment choices to make personal gains.

Delving into the illicit share transactions, the accused had acquired 11,795,100 shares in various companies, including 1,230,900 shares (10.43%) from HMB, and sold off 11,836,600 shares, with 4,915,200 (41.52%) sold back to HMB. This resulted in illicit profits amounting to Rs2,866,646.
SECP lodged a formal complaint under Section 128 of the Securities Act, 2015, which carries penalties under Section 159. After a thorough trial and presentations from SECP’s Special Public Prosecutors and the defense, the court delivered its judgment on June 14, 2025.
The accused was convicted and fined Rs8,599,938, three times the unlawful profit, with the sum due within seven days. Failure to comply would lead to imprisonment until full restitution is made.
This precedent-setting insider trading conviction follows SECP’s identification of 37 registered entities involved in unlawful financial activities in Pakistan nearly half a year earlier.