Significant strides have been achieved in the investigation of the Pakistan Stock Market Scam 2020, as the Securities and Exchange Commission of Pakistan (SECP) has taken decisive action by initiating criminal cases against those implicated.
The SECP's thorough investigation has revealed the involvement of sponsors and individuals associated with brokerage houses in the manipulation of share prices for three listed companies. Such nefarious activities violate the Securities Act and carry severe penalties, including imprisonment for up to three years and fines of up to 20 crore rupees.
The scam, under investigation since 2020, underscores the gravity of fraudulent practices within the financial sector. Perpetrators engaged in deceitful tactics, such as inflating share prices through orchestrated trading orders and registering fictitious purchase orders.
According to the SECP's findings, the accused parties systematically placed and canceled purchase orders, manipulating market dynamics for personal gain. Additionally, they exploited customer accounts to further their illicit activities.
The initiation of criminal cases by the SECP reflects a firm commitment to upholding the integrity and transparency of Pakistan's stock market. As investigations progress, authorities aim to hold those responsible fully accountable, sending a strong message against financial malpractice and market manipulation.
