ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) filed criminal case against CEO of Cedar Capital (Private) Limited (CCPL) and his two prominent clients for manipulating the prices of the share of Pak Electron Limited (PAEL) at Pakistan Stock Exchange.
The case was filed in the court of the sessions judge Karachi on Friday, said a statement issued by the SECP.
The SECP’s investigation revealed that the clients of CCPL fraudulently induced the potential market investor for trading in the shares of PAEL by manipulating the price and volume of shares and creating artificial market. The investigation report covers two review periods, starting from April 1, 2013 to April 16, 2013, and the second review period spans from May 17, 2013 to July 8, 2013.
The accused, as a part of their scheme, traded a volume of 13,433,500 PEAL shares constituting 18 percent of the total trading volume during the first period. During the second period, the accused traded 19,416,000 shares of PAEL, which comprises 22 percent of the trading volume traded during second period. While taking such a large long position in the shares, the group/co-accused generated substantial amount of volume each day. Further, when they entered the ready market, the volume generated by the group was more significant as compared to the volume of the market as a whole.
The accused are in complete violation of settled principle of law as well as provisions of Section 17(a) and 17(e) (ii) (v) of the 1969 Securities & Exchange Ordinance and all enabling provisions.
