The Securities and Exchange Commission of Pakistan (SECP) filed another criminal complaint against Darson Securities (Private) Limited (Darson) and three clients for manipulating the prices of 28 scrips from April 1, 2012 to May 15, 2014. The case has been filed in the Karachi sessions court.
The statement of the regulator said that the SECP’s investigation revealed that three clients of Darson: MRA Securities (Private) Limited and AHM Securities (Private) Limited along with Darson (collectively referred to as group) fraudulently induced the potential market investor in 28 scrips to manipulate the price and volume of shares and created artificial market during the period.
The scheme of trading indicated that the group traded in illiquid scrips in such a manner, which gave the impression of active trading and henceforth sold their position to the public. Further, when they entered the ready market, the volume generated by the group was more significant as compared to the volume of the market as a whole. The group earned a profit of 14.2 million rupees through this activity.
The accused are in complete violation of settled principle of law as well as provisions of Section 17(a) and 17(e) (ii) (v) of the 1969 Securities and Exchange Ordinance, and all enabling provisions.