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Islamabad, August 7, 2025: The Securities and Exchange Commission of Pakistan (SECP) has filed a criminal complaint against the Company Secretary of a listed company, his four close relatives, and a private limited company over alleged involvement in insider trading. The complaint, submitted to the Special Court (Offenses in Banks) in Karachi, has been admitted as Complaint No. 14 of 2025.
According to the SECP, an investigation under the Securities Act, 2015 revealed that from August 22 to October 12, 2023, certain clients accumulated shares of a listed company while possessing material non-public information about a planned buy-back and delisting initiative by the company’s sponsors. The Commission identified this information as “inside information” under the law.
The investigation further established that the Company Secretary was privy to this price-sensitive information as early as August 11, 2023, due to his official role in handling the delisting process. He allegedly shared this confidential information with his close relatives and the CEO of an associated private firm. The Secretary also reportedly provided funds to his relatives to purchase the shares, profiting from the subsequent surge in share prices after the information became public.
Following the official announcement and a spike in the company’s share price, the accused parties sold the accumulated shares in the open market, collectively earning illicit gains totaling Rs. 338.085 million. Notably, none of the accused had any prior trading history in the shares of the listed company, raising red flags during the investigation.
Under the Securities Act, 2015, insider trading is a criminal offense that carries penalties of up to three years of imprisonment or a fine of up to Rs. 200 million, or three times the amount of the unlawful gain—whichever is higher.
The SECP emphasized its continued commitment to robust enforcement and supervision to uphold the integrity of Pakistan’s capital markets and protect investors against unlawful activities.
