KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has made significant progress in addressing the Pakistan Stock Market Scam 2020, taking decisive action by initiating criminal cases against implicated persons.
Through a thorough investigation, the SECP has uncovered the involvement of sponsors and individuals linked to brokerage houses in manipulating the share prices of three listed companies. Such activities are in clear violation of the Securities Act, carrying severe penalties, including imprisonment for up to three years and fines of up to 20 crore rupees.
The scam, under scrutiny since 2020, highlights the serious implications of fraudulent practices within the financial sector. Perpetrators employed deceitful tactics, including inflating share prices through coordinated trading orders and creating fictitious purchase orders.
SECP findings reveal a systematic pattern of placing and canceling purchase orders by the accused parties, manipulating market dynamics for personal gain. Additionally, they exploited customer accounts to facilitate their illicit activities.
The initiation of criminal cases by the SECP underscores a firm commitment to maintaining the integrity and transparency of Pakistan’s stock market. As investigations progress, authorities are determined to ensure full accountability for those involved, sending a strong deterrent message against financial malpractice and market manipulation.
