SECP files criminal complaint on front-running charges
Staff Report
Based on an investigation conducted under the Securities Act, of 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.
According to a statement issued by regulator, the criminal complaint number 15 of 2024, dated April 8, 2024, has been filed at the Special Court (Offenses in Banks), Karachi.
Front-running is a form of inside trading where two parties match share prices based on inside information.SECP Issues Paper on Shariah-compliant Brokerage
The analysis of order-level data by the SECP investigation team revealed that a day trader, with the active 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. 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 investors as a counterparty.
This resulted in losses to the institutional investor and gains to the day trader. There is strong evidence that the investment officer of the institutional investor was actively colluding with the day trader.
SECP is committed to ensuring fairness and transparency in the capital market to enhance investors’ confidence.
SECP directs listed companies to disclose gender gap data
The Securities and Exchange Commission of Pakistan (SECP) has issued a directive for listed companies to include a statement on the gender pay gap in their annual reports.
The directive aligns with the Government’s instructions under the Prime Minister’s Women Empowerment Package 2024, aimed at promoting gender diversity within the corporate sector.
To facilitate compliance, the SECP has provided a suggestive template for the gender pay gap statement, along with guidance on its calculation methodology.
This initiative will assist listed companies in accurately assessing and reporting gender pay differentials within their organizations.
The requirement for reporting the gender gap applies to listed companies for the financial year ending on or after June 30, 2024.
The SECP remains committed to promoting gender equality and diversity in the corporate sector and views this directive as a significant step towards achieving this objective.
Through collaborative efforts with stakeholders, we aim to create a more inclusive and equitable workplace environment.
