The Securities and Exchange Commission of Pakistan (SECP) has filed a criminal complaint in the Karachi sessions court against seven individuals, i.e., Ghulam Rasool, Sohail Amin Ghazi, Ali Raza, Imran Khatri, Ehtisham Rais, Muhammad Noor and Muhammad Fayyaz, all clients of Multiline Securities Limited (MSL) collectively referred to as “Group” for ramping share price of Silver Star Insurance Limited (SSIC) from Rs5 to Rs12 per share.
Based on an investigation, the SECP found that the group indulged in market manipulation by generating artificial volume and placed orders in a suspicious pattern.
Out of these orders placed, a large number of orders were canceled before execution, giving a false impression of active trading.
Investigation revealed that these individuals hampered free and fair mechanism of price discovery by influencing demand and supply forces to their benefit. It may be noted that market manipulation is a criminal offence under Section 133 of the 2015 Securities Act.
Being cognizant of the fact that for smooth capital market operations, free and fair market play is of critical importance, the SECP has ordered multiple investigations to curb such market manipulative schemes.