The Securities and Exchange Commission of Pakistan (SECP), in collaboration with the Karachi Stock Exchange (KSE) and National Clearing Company of Pakistan (NCCPL) organized an “Investors’ Feedback Programme” in Karachi. The programme was attended by representatives of all major capital market intermediaries including brokers, mutual funds, insurance companies, banks/DFIs and corporate pension funds and major brokerage houses. It was held to seek feedback of these entities on measures required to build investor confidence and increase investor participation in the capital market activities. The organizers also highlighted key institutional reforms introduced in the capital market that have significantly reduced market risk, added transparency, and enhanced transactional efficiency. The programme proved instrumental in brainstorming ideas and steps needed to be taken in various segments of the capital market both primary and secondary. The participants deliberated upon sugg...

ISLAMABAD: Integrity, transparency and fairness in the capital markets are critical for protection of investors and enhancing their confidence. However, market abuses and unfair trading practices such as front-running/insider trading negatively affects this basic essence of the markets.  Front-running, a form of insider trading arises when a person engaged in processing or making investment decision/order in his official capacity uses that information for his personal benefit directly or indirectly.                                                                                     This undesirable activity usually takes place in institutions active in the capital markets such as brokerage houses, mutual funds, financial institutions and entities having large investments in ...