Key Points:
- Securities regulator seeks trading and share-pledge records
- Investigation has been underway since June 2
ISLAMABAD: Pakistan’s securities regulator has expedited an investigation into suspected insider trading and other possible securities law violations in the share trade of Unity Foods Limited.
Securities and Exchange Commission of Pakistan has summoned the company’s chief executive, Muhammad Farrukh, and three others for questioning, according to Commission officials.
The Securities and Exchange Commission of Pakistan (SECP) has issued final notices to Farrukh, Safdar Sajjad, Fahmida Amin, and Hina Safdar, requiring them to appear before its investigation team on September 3, in their personal capacity, for recording of their statements.
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The regulator is examining unusual trading activity in Unity Foods shares and has sought explanations, transaction records and supporting documents from the four individuals.
Farrukh has, specifically, been asked to provide complete records relating to the pledging of Unity Foods shares with banks.
Sajjad, Amin and Hina Safdar have been asked to explain their purchases and sales of the company’s shares.
The final notices were issued after the four individuals failed to appear before the investigation team despite an earlier summons for August 31.
Regulator initiated probe in June
The formal investigation into trading in Unity Foods shares has been underway since June 2 under Section 139 of Pakistan’s Securities Act, 2015.
The latest notices require the four individuals to appear with relevant trading records and supporting documentation as the regulator examines the circumstances surrounding the unusual transactions.
The investigation does not by itself establish wrongdoing.
Any determination of violations or regulatory action would depend on the inquiry findings and the responses and evidence submitted by the individuals concerned.
Unity Foods is a Pakistan-based food company listed on the Pakistan Stock Exchange.
Its shares are publicly traded, making transactions by executives, directors and other connected persons subject to securities market disclosure and trading rules.
Pakistan’s securities regulator continues to scrutinise unusual trading patterns in listed companies for possible market manipulation, misuse of unpublished price-sensitive information and other breaches of securities laws.
The regulator has already referred the case to the Federal Investigation Agency (FIA) for criminal investigations into the company’s affairs.
