ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) filed criminal complaint against two on charges of front-running, ARY News reported.
“Based on an investigation conducted under the Securities Act, 2015, the SECP has filed a criminal complaint against two individuals who were found involved in front-running equity trading by a large institutional investor during the period from October 1, 2021, to December 31, 2021,” the SECP said in a press statement.
The commission filed the criminal complaint on April 8 at the Special Court (Offenses in Banks), Karachi.
The Securities and Exchange Commission of Pakistan’s investigation team revealed that a the accused, with the connivance of an investment officer of the institutional investor, purchased shares before the placement of buy orders by the institutional investor and subsequently sold those shares to the institutional investor.
Read more: Criminal cases filed against individuals involved in stock market manipulation
“The practice continued for a few months. A substantial portion of the trades executed by the day trader during this period matched with trades executed by institutional investor as a counterparty. This resulted in losses to the institutional investor and gains to the day trader,” the SECP said.
SECP reiterated that there was strong evidence that the investment officer of the institutional investor was actively colluding with the accused.
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