SECP Directs Public Companies to Prevent Insider Trading of Unpublished Price-Sensitive Information

 

The Securities and Exchange Commission of Pakistan (SECP) has issued a directive to all publicly listed and public sector companies, instructing directors, senior management, and employees to abstain from "Insider Trading" of unpublished price-sensitive information. The guidelines, released on Friday, emphasize compliance with relevant laws and company policies, while safeguarding confidential and proprietary information received by virtue of their positions.

The directive also highlights the need for a code of conduct for directors, senior management, and employees in accordance with the Public Sector Companies (Corporate Governance) Rules, 2013, and the Listed Companies (Code of Corporate Governance) Regulations, 2019. SECP aims to provide general guidance to companies in formulating their code, emphasizing individual responsibility and business-led solutions to prevent conflict of interest and promote an ethical culture.

The implementation of the code and its accountability measures will be the responsibility of the respective companies. By addressing insider trading and promoting transparency, SECP seeks to bolster trust and confidence in Pakistan's business environment.

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