SECP concludes probe into allegations of manipulation in OGDCL shares

Author: News Desk

The Securities and Exchange Commission of Pakistan (SECP) has concluded its probe into allegations that appeared in the media of manipulation in the shares of OGDCL on January 22, 2020, with respect to purported rumours about its privatization at a discount to market price.

An exhaustive analysis was carried out including investigation of data at order and trade level in ready and futures market, scrutiny of volume leaders, day traders, profit makers, all categories of investors, brokerage houses, etc.

Based on the analysis, it has been observed that individuals and mutual funds contributed to 38% and 24% of the total selling volume, respectively. On the buying side individuals contributed to 49% and brokers to 24% of the buying volume. Total amount of profit taking by the top ten traders aggregated to Rs1.7 million. Among these top ten traders, maximum profit of Rs307,381 made by an institution. Hence, the analysis did not reveal any irregular patterns, abusive market practices or insider trading. Moreover, the trading activity of 22nd January, 2020 was reviewed to rule out any possibility of abusive market practices carried out with an objective to realizing any undue future gains.

The SECP is fully committed to promoting integrity and efficiency of the capital market by making it more disciplined and transparent. The regulator has adopted a zero tolerance policy towards offences and market abuses and has accordingly strengthened its surveillance capabilities and systems. Over the past six months alone, 17 prohibitory orders were issued and two criminal complaints were filed related to violations of securities laws.Nevertheless, investors are advised not to indulge in speculative trading based on rumours and disinformation; rather, investment decisions should be made considering the fundamentals of a company.

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