In a landmark crackdown on financial corruption, the Sindh Special Court (Offences in Banks) has delivered Pakistan’s first-ever conviction for insider trading, shattering the culture of impunity that has long plagued the country’s financial sector.
Read More: Finance Ministry Moves Against PESCO Board Chairman Amid Allegations of Misconduct, Power Abuse
The case—filed by the Securities and Exchange Commission of Pakistan (SECP)—targeted Zakir Hussain Somji, Assistant Vice President (AVP) – Investments at Habib Metropolitan Bank Limited (HMB), for shamelessly abusing his position to manipulate the stock market for personal profit. Somji was found guilty of violating Section 128 of the Securities Act, 2015, and sentenced to pay a penalty of Rs. 8.6 million — triple the illicit profits he made. Failure to pay will result in immediate imprisonment.
The conviction exposes the dark underbelly of Pakistan’s corporate elite, where privileged insiders have long exploited confidential information with little fear of consequence. But this ruling signals a dramatic shift — a clear warning to financial criminals that the days of getting away with market manipulation are over.
SECP Chairman Akif Saeed hailed the judgment as a watershed moment, asserting that it would restore investor trust and reinforce the rule of law in capital markets. “This is not just a win in court — this is a bold strike against systemic abuse in our financial institutions,” he said.
The investigation began when SECP’s forensic review of Karachi Automated Trading System (KATS) data from 2014–2016 uncovered suspicious activity. It revealed Somji had amassed 11.8 million shares, including 1.2 million from his own bank, and sold them — over 40% of which were dumped back to HMB — netting an illegitimate profit of nearly Rs. 3 million.
Following a detailed probe, SECP filed a complaint under Section 128, and after a full-fledged trial, the court handed down a historic verdict on June 14, 2025. The court emphasized that if the penalty isn’t paid within seven days, the convict will be jailed.
This judgment doesn’t just punish one offender — it sets the tone for a new era of accountability. It reinforces SECP’s mandate to protect the integrity of Pakistan’s financial markets and sends a blunt message to corporate insiders: cheat the system, and you will pay the price.
