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Business Recorder
5 days ago
- Business
- Business Recorder
Insider trading: SECP secures first-ever conviction
KARACHI: In a landmark decision, the Sindh Special Court (Offences in Banks) has handed down the first-ever conviction for insider trading in Pakistan's history. The court found Zakir Hussain Somji, formerly an Assistant Vice President (AVP) of Investments at a private bank, guilty of insider trading in violation of Section 128 of the Securities Act, 2015. The case originated from an SECP inspection that identified suspicious trading activity through an analysis of Karachi Automated Trading System (KATS) data spanning from January 1, 2014, to February 2, 2016. It was suspected that Somji, by virtue of his position at private bank and access to the bank's investment decision-making processes, misused insider information for personal gain. Insider trading: SECP shares 27 cases with FIA An investigation revealed that Somji purchased 11,795,100 shares of various companies, with private bank appearing as the counterparty in the purchase of 1,230,900 shares — constituting 10.43 percent of his total buying. He subsequently sold 11,836,600 shares, of which 4,915,200 shares (41.52 percent) were sold back to private bank, earning an unlawful profit of Rs2.87 million. Following a detailed inquiry, SECP filed a formal criminal complaint under Section 128, punishable under Section 159 of the Securities Act, 2015. After a full trial — which included testimonies from SECP's Special Public Prosecutors and defence arguments — the Special Court delivered its judgment. The court noted that the accused's trades matched bank's on 173 occasions, a pattern deemed impossible without access to inside information. Despite Somji's denial of wrongdoing and claim of innocence under Section 342 of the Criminal Procedure Code (CrPC), the court held the prosecution's evidence 'cogent and unimpeachable.' Objections raised by the defence regarding unexamined joint account holders and senior officers were dismissed, as the trades in question were conclusively linked to Somji through his own CNIC. The court found the allegations 'in affirmative/ proved,' confirming that Somji committed the offence. It concluded these transactions amounted to front running, wherein Somji either bought shares ahead of bank's investment decisions or traded directly with the bank, reaping illicit profits. The judgment further noted that the accused, being an AVP Investment, was under a legal and ethical obligation not to trade against his own bank while in possession of insider information. A financial penalty of Rs8,599,938 — three times the unlawful gain — was imposed on Somji, to be deposited within seven days. The court explicitly stated that failure to pay within the stipulated period would result in Somji's remand to jail until the full amount is recovered. While the accused had undergone a lengthy trial since 2017, the court was not inclined to award a custodial sentence. The case stands as a landmark for insider trading prosecution in Pakistan's capital markets and a cautionary reminder of the consequences of breaching regulatory obligations. According to the SECP spokesperson, the judgment underscores the Commission's mandate to safeguard market integrity and protect investors, setting a strong precedent for future enforcement actions against market abuse and regulatory violations. Akif Saeed, Chairman of the Securities and Exchange Commission of Pakistan, commended the legal team, emphasising that the judgment would significantly boost investor confidence in Pakistan's capital markets and support capital formation. He expressed hope that this ruling would set a crucial precedent for other pending cases and ongoing inquiries into insider trading and market manipulation. Copyright Business Recorder, 2025
Time of India
10-06-2025
- Health
- Time of India
Ayurvedic college students start hunger strike
1 2 Berhampur: Students of govt-run Kaviraj Anant Tripathy Sharma (KATS) Ayurvedic College, Ankushpur, near here started a hunger strike from Monday after their seven-day agitation, alleging irregularities in the examination results and harassment by college authorities. "We started our agitation at the main gate from June 3. We launched the hunger strike from Monday as our demands were not met. The strike will continue till the demand is fulfilled," said R K Upadhaya, a final year student. Despite the district administration trying to convince the agitators, they are firm on their demands and locked up the principal's office. The agitating students have written a letter to chief minister Mohan Charan Majhi seeking immediate action against teachers, who have harassed them. Biswajit Rana, a IIIrd year student alleged that 20 out of 66 first year students failed in the first year examination which was published on Monday. Last year, 23 out of 53 students failed in first year. The results are not published on time, he said. The college authorities also imposed fines on the students for silly matters. An officer from the Ayush department inquired into their allegations on May 20, when they submitted a memorandum to the chief minister. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo Due to their strike, patient care services were not hampered, the agitators said. College principal Bipin Bihari Khuntia said as per norms of the National Commission for the Indian System of Medicines (NCISM), the double valuation for evaluation of answer papers was introduced since 2020-21. "Some students could not clear their examinations due to this system. They, however, cleared the supplementary examination. The college was not responsible for it," he said. "Academic in-charge of the college has warned students, who were not attending classes regularly. The college will not develop unless a disciplined atmosphere prevails in the campus," he added.
