The Securities and Exchange Commission of Pakistan (SECP) has initiated a major legal action against a former company executive of Suzuki Pakistan and his family, alleging a multi-million-rupee insider trading scheme. The criminal complaint, filed on August 7, 2025, at the Special Court (Offenses in Banks) in Karachi, targets the company’s former secretary, four close relatives, and a private limited company.
Read More: Revoo Hosts 2025 Dealers Conference to Strengthen Partnerships and Showcase Progress
According to a press release from the SECP, a comprehensive investigation was launched under the Securities Act, 2015, after suspicious trading activity was detected. The probe revealed that a group of clients accumulated shares of a listed company between August 22, 2023, and October 12, 2023. This trading occurred while confidential, price-sensitive information about a planned share buy-back and delisting was not yet public.
The SECP concluded that the company secretary, due to his official position and involvement in the delisting process, had access to this “inside information” as early as August 11, 2023. He is accused of sharing this non-public information with his relatives and the CEO of an associated company, and also providing them with the funds to acquire the shares.
Following the public disclosure of the buy-back and delisting information, the share price of the company rose significantly. The accused parties then sold their accumulated shares, collectively generating an illegal profit of Rs. 338.085 million. The SECP noted that none of the accused had a prior history of trading in the company’s shares, which raised further suspicion.
Suzuki Pakistan, the former employee’s employer, has remained silent on the allegations. Inquiries sent to the company’s new secretary had not received a response by the time the story was filed.
The Securities Act, 2015, defines insider trading as a criminal offense. The penalties for such a violation can include up to three years of imprisonment, a fine not exceeding Rs. 200 million, or a fine up to three times the illicit gain. The SECP has stated its commitment to effective supervision and enforcement actions to protect the integrity of the capital market and safeguard investors from misconduct.
