FIA seeks past insider Trading cases – no new inquiries initiated

January 29, 2025 (MLN): Market participants need not be concerned as the Federal Investigation Agency (FIA) has requested the Securities and Exchange Commission of Pakistan (SECP) to share details of insider trading and market manipulation cases where investigations have been concluded and criminal complaints have been filed in relevant courts. 

This request is part of an ongoing review under the Anti-Money Laundering (AML) Act, 2010.

Sources close to the matter revealed that the cases in question pertain to incidents till 2021 and have already undergone due legal process.

No new investigations or regulatory actions have been initiated as a result of this request.

It must be noted, that 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.

It is pertinent to mention that 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.

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