Habib Metro Bank’s Associate Vice President Convicted in Significant Insider Trading Case

June 18, 2025

In a groundbreaking ruling, the Sindh Special Court (Offences in Banks) has issued the first-ever conviction for insider trading in Pakistan, following a case brought by the Securities and Exchange Commission of Pakistan (SECP). Zakir Hussain Somji, who held the position of Assistant Vice President, Investments at Habib Metropolitan Bank Limited (HMB), was found guilty of engaging in insider trading under Section 128 of the Securities Act, 2015.

SECP Chairman Akif Saeed expressed satisfaction with the court’s decision, emphasizing that this verdict will strengthen investor confidence in Pakistan’s capital markets and support long-term capital formation endeavors. He also expressed the hope that this ruling would set a precedent for similar cases and ongoing investigations related to insider trading in Pakistan.

The case originated from SECP’s thorough examination of suspicious trades recorded via the Karachi Automated Trading System (KATS) between January 1, 2014, and February 2, 2016. Investigations revealed that Somji had exploited insider information regarding HMB’s investment decisions for personal gain.

The accused purchased a total of 11,795,100 shares from various companies, including 1,230,900 shares (10.43%) acquired from HMB, and sold 11,836,600 shares, with 4,915,200 shares (41.52%) being sold back to HMB, resulting in illegal profits amounting to Rs2,866,646.

Following SECP’s formal complaint under Section 128 of the Securities Act, 2015, which carries penalties under Section 159, a full trial ensued with hearings conducted by SECP’s Special Public Prosecutors and the defense. The court delivered its verdict on June 14, 2025, finding the accused guilty and imposing a fine of Rs8,599,938, three times the illicit profit, with a seven-day deadline for payment. Failure to pay the fine would result in imprisonment until the full amount is settled.

This significant insider trading conviction comes after SECP uncovered nearly 37 registered companies involved in illicit financial activities within Pakistan.

In other news, Pakistan International Airlines (PIA) has launched special flights to facilitate the evacuation of stranded Pakistani citizens in Iran. As a precautionary measure, the National Council of Educational Research and Training (NCERT) has issued an advisory alerting WhatsApp users to stay vigilant amidst rising hacking threats.

Furthermore, an upcoming event will see U.S. President Trump hosting Field Marshal Asim Munir for lunch today, highlighting the diplomatic engagements between the two nations. Additionally, individuals interested in Bitcoin (BTC) conversion rates to Pakistani Rupee (PKR) can find the latest exchange rates for June 18, 2025, on various platforms.