KARACHI – Massive Insider trading scandal rocks Pak Suzuki as Rs338 million illegal profit raised questions about country’s largest automaker.
The autogiant has been thrust into the spotlight after shocking revelations of a high-stakes insider trading scandal involving its very own company secretary. The Securities and Exchange Commission of Pakistan (SECP) filed criminal complaint against company secretary, with four of his close relatives, and a private firm for a calculated and deliberate abuse of confidential information.
As per the initial probe, the company secretary leaked this classified information to family members and a business associate. Armed with non-public intelligence, the accused rapidly purchased shares from August 22 to October 12, 2023, before any official announcement hit market.
As public announcement caused share prices to move up, the accused parties swiftly offloaded their holdings, raking in jaw-dropping Rs338million in profits. Surprisingly, none of them had any previous record of trading in Pak Suzuki shares, raising even more red flags.
Authorities allege that the company secretary not only shared tip-off but also bankrolled his relatives’ investments, profiting from the insider scheme himself.
For the unversed, the Securities Act, 2015, makes clear that insider trading is a criminal offense and is punishable by up to 3 years in prison, with fine of Rs2crore, or three times the unlawful gain whichever is higher.
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