ISLAMABAD, Feb 13: The Securities and Exchange of Pakistan (SECP) has issued a notification to specify the manner and form for the disclosure of inside information by the listed companies and by the persons discharging managerial responsibilities in listed companies.The notification issued here on Wednesday under Section 15D of the 1969 Securities and Exchange Ordinance read with section 40B of the 1997 Securities and Exchange Commission of Pakistan Act, will result in clearly defining the roles and responsibilities of the company as well as the person possessing the information.

It also describes the obligation of stock exchanges with respect to dissemination of information so that no person takes undue advantage of the inside information.

Now the commission will be in a better position to prosecute the persons involved in insider trading as the presence of newly-introduced statutory obligation will restrain the persons alleged of insider trading from citing legal justifications for their illegal acts in the presence of clear requirements. It is pertinent to mention here that dissemination of material information by the listed companies through the stock exchanges is also a requirement of listing regulations.

The said provision of the 1969 Ordinance states the obligations of persons including listed companies, persons who possess inside information, the persons discharging managerial responsibilities in listed companies with respect to discloser of information and persons associated with the persons discharging managerial responsibilities in a listed company.