The Securities and Exchange Commission of Pakistan has found no insider trading in shares of the Oil & Gas Development Company Limited with regard to rumours of its privatisation at a discounted price.
The regulator said it probed allegations of manipulation in the shares of OGDCL on January 22, 2020.
It investigated the data at order and trade level in ready and future markets, scrutiny of volume leaders, day traders, profit makers, all categories of investors and brokerage houses.
Based on the analysis, it was observed that individuals and mutual funds contributed to 38% and 24% of the total selling volume, according to the SECP.
On the buying side, individuals contributed to 49% and brokers to 24% of the buying volume.
The total amount of profit-taking by top ten traders aggregated to Rs1.7 million, it said. Among them, the maximum profit of Rs307,381 was made by an institution.
“Hence, the analysis did not reveal any irregular patterns, abusive market practices or insider trading,” the SECP said in a statement.
“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.”
It said it was fully committed to promoting integrity and efficiency of the capital market by making it more disciplined and transparent.
The regulator said it had adopted a zero-tolerance policy towards offences and market abuses and accordingly strengthened its surveillance capabilities and systems.
Over the past six months alone, it said, 17 prohibitory orders were issued and two criminal complaints were filed related to violations of securities laws.
The SECP advised investors to not indulge in speculative trading based on rumours and disinformation. Investment decisions should rather be made considering the fundamentals of a company, it added.