ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has filed a criminal complaint against an employee of a leading bank for his alleged involvement in insider trading.

The accused was serving as the head of equity and capital market in the bank and was responsible for the placement of orders for equity investment/disinvestment of shares on behalf of the bank.

The case, filed in the Karachi Sessions Court, is based on an investigation conducted by the SECP that confirmed that the accused was using confidential information regarding the bank’s decisions to invest/disinvest as defined in Section 130 (g) and Section 129 (d) of Securities Act 2015.

He was found involved in insider trading in collusion and connivance with his relatives in violation of the Employees’ Prudential Regulations of the bank.

An SECP official said the banker made a profit of millions of rupees through illicit trading.

Trading data of the Karachi Automated Trading System (KATS) from August 24, 2012 to February 2, 2016 obtained from the Pakistan Stock Exchange (PSX) revealed a number of suspicious transactions that were in contravention of Section 128 (1) of the securities act.

The SECP has also taken up the matter with the State Bank of Pakistan (SBP) for appropriate action. A statement said the SECP actively monitors equity trading in the stock market to curb market abuses and unfair trading practices such as front-running/insider trading.

Published in Dawn, March 30th, 2017