SECP reports 27 cases of insider trading to FIA
Federal Investigation Agency (FIA). In response to reports and requests from various sources, the SECP clarified that it has been actively investigating cases related to insider trading and market manipulation. Pursuant to the Securities Act of 2015, the SECP has been filing criminal complaints and pursuing legal action in relevant courts.
The Federal Investigation Agency (FIA), mandated to investigate money laundering under the Anti-Money Laundering Act of 2010, identified insider trading and market manipulation as predicate offenses falling under its purview. Consequently, the FIA approached the SECP to share details of cases involving these offenses for parallel investigations under the AML Act. In compliance with the FIA’s request and the provisions of the AML Act, the SECP shared information on 27 completed cases of insider trading and market manipulation for further investigation by the FIA.
The SECP emphasized that the referral of cases to the FIA does not implicate the companies or brokerage houses involved in the trading but specifically targets individuals found engaged in insider trading and market manipulation. The shared information pertains to criminal complaints filed in courts from 2008 to the present, under the Anti-Money Laundering (Referral) Rules of 2021. The SECP underscored that the details of these cases are part of the public record and accessible to any interested party or authority through the courts.
It is important to note that the SECP’s actions align with its regulatory responsibilities as outlined in the Securities Act of 2015. By cooperating with the FIA and sharing information on cases of insider trading and market abuse, the SECP aims to address financial misconduct and uphold the integrity of the capital market. The collaboration between regulatory bodies like the SECP and the FIA plays a crucial role in safeguarding investors’ interests and maintaining transparency in the financial sector.
As the investigations and legal proceedings continue, the SECP remains committed to combatting insider trading and market manipulation through proactive measures and enforcement actions. By working in tandem with law enforcement agencies like the FIA, the SECP strives to promote fair and orderly conduct in the capital market while holding individuals accountable for illegal activities. The referral of cases to the FIA underscores the collaborative efforts to tackle financial crimes and protect the integrity of Pakistan’s financial market.