SECP files cases for stock market manipulation
The Securities and Exchange Commission of Pakistan on Wednesday filed a case against the suspects involved in Pakistan stock market manipulation. The SECP filed a criminal case against the suspects, including sponsors and brokerage house management people, who were allegedly involved in the stock market manipulation.
The investigation revealed the names of the accused who have manipulated the shares of three listed companies in the stock market through the placement of trading orders aimed at artificially inflating share prices. According to the SECP, the accused engaged in buying and selling shares amongst themselves to manipulate the market.
The individuals involved also registered fraudulent orders for the purchase of shares. The accused further misused customer accounts by placing and subsequently canceling purchase orders for shares.
In terms of the Securities Act, 2015, market manipulation, being a criminal offense, may lead to imprisonment up to three years and a fine up to Rs 200 million. SECP is committed to taking effective supervision and enforcement actions to ensure the integrity of the capital market and protect investors from malpractice.
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