Under the newly circulated Securities Act 2015, insider dealing has been announced an illegal act.
The regulation empowers (SECP) Securities And Exchange Commission of Pakistan to take actions for financier fortification with the aim of promoting development of the securities market.
SECP officials said on at a press conference that the regulation unmistakably explains ‘secret information’ and ‘insiders’; deceitful trading and market swindling transactions; market manipulation and other kinds of deceitfully bringing trading in securities, i.e. service of fraudulent or deceiving devices (schemes) and incorrect or deceptive statement inducing securities trades.
The SECP officials contrasted the new Securities Act with the 1969 Securities and Exchange Ordinance and spotted that the new law had been announced to present best international systems and combine the International Organisation of Securities Commission principles of securities rules.
As per the 1969 law, the SECP had no controls to interfere for financier protection and to supervise the complaints.
The old law covered no provisions for the procedure of recovery of fines forced by the SECP, responsibilities of securities exchange, procedure audit of stock exchanges, rule of clearing houses and central stock and other front line supervisors. These all had been included in the new Act.