The Securities and Exchange Commission of Pakistan (SECP) Tuesday filed a criminal complaint against a person who manipulated the price of shares of Gauher Engineering Limited (now Drekkar Kingsway Limited). As a result of an investigation, it emerged that the accused and his associates bought a major stake in Gauher Engineering Limited in 2014 at a very subsidized rate.
Gauher Engineering at that time was on the Pakistan Stock Exchange's defaulters counter. Upon resumption of trading, the accused placed significant buy orders to ramp the price of shares.
Subsequently, the shares were sold to market participants at higher prices to earn substantial gains. The accused also used his private limited company, in which he and his family had majority shareholding. It may be noted that the market manipulation is a criminal offence under the Securities Act, 2015, liable to punishment of imprisonment of either description for a term which may extend to three years or a fine not exceeding Rs100 million or both.
It is the second criminal complaint filed by the SECP within 14 days, which shows its firm commitment to its policy of zero tolerance towards the market abuse and any malpractice in the stock market. The SECP is striving its best to ensure transparency in the capital market and strengthen investor confidence.-PR