ISLAMABAD: The Securities and Exchange Commission of Pakistan(SECP), has shared 27 cases of inside trading with Federal Investigation Agency (FIA), for probe along with details of all cases of insider trading and market manipulation in which investigation had been completed and criminal complaints have been filed in relevant courts. The decision has been taken in response to FIA’s request for details of all cases involving insider trading and market abuse for parallel investigation under AML Act, 2010.
According to SECP, the referral of cases does not accuse the companies whose scrip has been manipulated or the brokerage houses through which trading was undertaken, rather it only points towards the person(s) found involved in Insider Trading and market manipulation, as defined in Securities Act, 2015, while trading in those scrips.
SECP, in line with its mandate has been actively investigating cases of insider trading and market manipulation and consequently filing criminal complaints in court of law under Securities Act, 2015. FIA, has the mandate to investigate the aspect of money laundering in predicate offences under Anti-Money Laundering Act, 2010 (the “AML Act, 2010”) and Insider Trading and Market Manipulation are among such predicate offences.
The record in respect of said cases is public in nature as the same is part of judicial record and can be accessed by any authority/person applying to the court of law. Accordingly, the list of all such 27 cases was shared with FIA under the Anti-Money Laundering (Referral) Rules, 2021.
Later on further clarifying, SECP said that with regard to taking up the investigations by FIA against capital market players, as reported
by certain quarters, it is clarified that Securities and Exchange Commission of Pakistan , has been investigating cases of insider trading and market manipulation and consequently, filing criminal complaints in relevant court of law in terms of Securities Act, 2015.
SECP further stated that FIA has the mandate to investigate the aspect of money laundering in predicate offences under Anti-Money Laundering Act, 2010 , and Insider Trading/Market Manipulation is one of such predicate offences.
As per AML Act, 2010, Insider trading and market manipulation is the only predicate offence falling within the regulatory ambit of the Commission.
Considering its mandate under AML Act, 2010, FIA requested Commission to share details of all cases involving insider trading and market abuse, for parallel investigation at its end under AML Act, 2010.
In view of FIA request and considering the provisions of AML Act, 2010, the Commission shared the details of all such cases of insider trading and market manipulation where investigation had been completed and criminal complaints had already been filed in relevant courts. Accordingly, a list of 27 criminal complaints filed in the court of law since year 2008 to date, was shared with FIA in September 2024, under the Anti-Money Laundering (Referral) Rules, 2021. The record in respect of said cases is public in nature as the same is part of judicial record and can be accessed by any authority/person applying to the court of law.
The referral of cases does not accuse the companies whose scrip has been manipulated or the brokerage houses through which trading was undertaken, rather it only specifies the person(s) found involved in Insider Trading and market manipulation, as defined in Securities Act, 2015, while trading in those scrips. Ends
