It decided by Securities and Exchange Commission of Pakistan (SECP) to take action contrary to all online investment ‘gurus’. Such persons are sharing their opinions on a regular basis on the stock market on social media channels. Head of the SECP’s Market Surveillance, Yasir Manzoor, Supervision and Enforcement Department, declared that “Performing like stock market gurus besides giving ideas around investments are illegal. This form of management is known as an inducement, which is a crime under Securities Act 2015.”
Social Media come to be a source to Manipulate Market Trends
As stated by market surveillance head, there are numerous forms of market manipulation procedures, for instance, wash trade, pump-and-dump, spoofing and false statements. These ‘gurus’ announcing false statements over social media on a daily basis, which affects the market trends. “One of the newest forms of market manipulation is delivering an incorrect statement chiefly by social media. The SECP is attempting to keep a check on this sort of activities. 33 such type of links and pages has sent to the Federal Investigation Agency (FIA).”
On the word of Yasir Manzoor, it is the regulator’s accountability to confine market manipulation and care for the investors’ interests. “It is also essential because each and every time the market crashes or a large number of investors face losses. Everybody critiques the regulator for not acting against market schemers,” he further added.
SECP take notice of more or fewer brokerage houses who are involved in the placement and cancellation of orders.
Over make false impressions of trading movement. He expressed in front of media. Such a method is mentioned to as interfering. SECP filed complaints about seven parties and two high-ranking employees. To decrease market influence, the SECP has filed criminal complaints against seven parties for market exploitations in the course of the present year. Two senior workers also allegedly involved in reservation profits, however, insider trading. Criminal complaints have been launch against the two.
Throughout the past few weeks, Pakistan Stock Exchange has reported massive changes as it saw rapid drops and climbs, strange in the market’s history. It could be one of the reasons that incited SECP to keen on the action. In a separate notice, SECP has permitted the listing of wheat futures deals on the Pakistan Mercantile Exchange (PMEX).