The SECP said this with reference to correspondence exchanged between SECP and the bank regarding various trades carried out by SBL in the ready market during the period from January 2020 till January 2021 in the shares of several companies, said a statement.
“Upon detailed review of trading data, it was observed that a large quantum of trades carried out by SBL during the aforesaid period in the ready market was matched with the proprietary accounts of brokerage houses through which it was trading.
“In the said transactions, SBL first sold and then on the next day bought those shares back of approximately the same quantity and at either the same rate or slightly higher rate, wherein, the counter-party on buy and sell trades was a proprietary account of the same brokerage house.”
The SECP said that the aforementioned pattern of trading as explained above may lead to false trading which is not in the interest of investors trading in the securities market. Therefore, representatives of SBL were called for a meeting to explain the rationale for carrying out such trades in the ready market, wherein, they explained that such transactions were called out only for the purpose of realization of gain/loss in the securities held by the SBL.
The pattern of trading adopted by the SBL may be detrimental for a fair and transparent trading in ready market where trading volumes in listed companies are generated based upon genuine demand and supply mechanism.
The SECP prohibited the bank from engaging in the said pattern of trading in the ready market or any other such arrangements which may affect the integrity of stock market. The SECP also warned all securities brokers of facilitating such transactions in the ready market.
A strategic collaboration between Huawei Pakistan and the Ministry of Planning, Development & Special Initiatives…
Pakistan's space programme achieved a historic milestone on Friday as the country's first-ever lunar orbiter…
Former prime minister and Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan on Friday urged the courts…
The Islamabad High Court (IHC) rejected on Friday a plea by the Intelligence Bureau (IB)…
In a significant development, the appointments of new governors for Punjab, Khyber-Pakhtunkhwa, and Balochistan have…
An explosion in the Chamrok area of Balochistan's Khuzdar district claimed the lives of at…
Leave a Comment