Law:

Section:

Companies Ordinance (XLVII of 1984)-------S. 224---Securities and Exchange Commission of Pakistan Act (XLII of 1997), S.33---Involvement of officer of the company in `insider trading'---Imposition of penalty---Appellant who was employed with the company as Fund Manager, was also acting as Manager, Equity Trading Department; and member of the Investment Committee of the company---Appellant was also involved in decision making with respect to day, to day investments of the funds of the company---On perusal of the trading data of Stock Exchange for the period under review, it transpired that the appellant traded in his personal capacity through another company and his trading concentrated in the same shares in which the funds had traded---Appellant traded in a manner, whereby, the appellant bought shares at a lower rate prior to initiation of buying activity of the funds and sold his shares once the price appreciated resulting from the purchases made by the funds---Authority passed impugned order and imposed a penalty of Rs.357,592 being an amount equivalent to the gain made based on inside information and further directed the appellant to surrender said amount being the amount of profit realized by the appellant---Appellant failed to abide by the policy of the company for trading of shares in personal capacity; he failed to obtain prior permission of the company before trading in the securities and was required to trade through company, whereas he traded through other company, which was again a clear violation of the policies---Appellant having been established to be involved in "insider trading", question as to whether or not the appellant was front running, did not arise---Impugned order of imposition of penalty and surrender of amount of profit realized by appellant was not interfered with in circumstances. ORDER 1. This order shall dispose of Appeal No. 5 of 2010 filed under section 33 of the Securities and Exchange Commission of Pakistan (the "Commission") Act, 1997 against the order dated 9-12-2009 (the "Impugned Order") issued by the respondent. 2. The appellant was employed with Alfalah GHP Investment Management Limited (the "Company") as Fund Manager and…

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