Law: Securities and Exchange Ordinance, 1969

Section: 15

Securities and Exchange Ordinance (XVII of 1969)--S. 15-A---Companies Ordinance (XLVII of 1984), S.282---Prohibition of Insider Trading--- Respondent was employee in the capacity of Fund Manager of various funds during the period under review; was also member of the Investment Committee of a company and in circumstances was involved in the decision making for day to day investments of the funds---Trading date of the Stock Exchange for the period under review, it was observed that wife of respondent was an active market participant and carried out her trading through five brokerage houses---Trading in the accounts of wife of respondent was occasionally in correlation with trading of funds of which the respondent was Fund Manager during period under review---Considering the fact that wife of the respondent was an active trader and she executed massive trading through her all accounts, only small segment of matched or correlated trades, were insufficient to conclude that respondent and his wife were guilty of misusing the information available to the respondent by virtue of his official capacity---Significant amount of losses suffered by the wife of the respondent during the course of her trading, when the respondent was Fund Manager and Member of the Investment Committee, also strengthened the arguments of the respondent regarding his non-involvement in the business affairs of his wife and her father---No stance of insider trading could be established against the respondent, whereby the respondent or his wife specifically traded in a manner that they took advantage of the trading by the funds---Respondent may not play a part in executing the trading decisions of accounts of his wife, but the fact could not be ignored that respondent had fiduciary responsibilities towards the funds and the unit holders by virtue of his privileged position---Respondent had a responsible position for managing the affairs of the funds which required thorough integrity and honesty while performing his official obligations---Linkages of respondent with the trading accounts of his wife, had raised conflict of interest between his official responsibilities and personal…

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