Do you take your stocks advice from social media? Congratulations people because you’re part of an illegal activity. The Securities and Exchange Commission of Pakistan (SECP) is going to act against any individual who regularly expresses their opinions on the social media about the stock market’s performance.
Yasir Manzoor, head of the SECP’s Market Surveillance, Supervision and Enforcement Department, while speaking at a workshop on insider trading and market manipulation on Tuesday said; “Behaving like stock market gurus and making suggestions about investments are illegal. This is a form of manipulation called inducement, which is a crime under Securities Act 2015.”
Previously, SECP also declared crowdfunding illegal in Pakistan. Mr. Manzoor also revealed that SECP has taken serious notice of the brokerage houses involved in placement and cancellation of orders showing misleading appearance in the market (termed as spoofing), thereby interfering the ith free and fair market.
“One of the latest forms of market manipulation is issuing a false statement mainly through social media. The SECP is trying to keep a check on such activities. A list of 33 such links and pages has been forwarded to the Federal Investigation Agency (FIA).”
During the current year, SECP reportedly has filed 7 criminal complaints about market abuses that include both insider trading and market manipulation. Moreover, two criminal complaints have also been filed against senior employees of two banks for their involvement in booking profits through insider trading.