Unity Foods Insider Trading Probe Intensifies

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has intensified its investigation into alleged insider trading and unusual transactions in the shares of Unity Foods, issuing final notices to four individuals, including the company’s Chief Executive Officer, Muhammad Farrukh.

According to the SECP, Muhammad Farrukh, Safdar Sajjad, Fahmeeda Amin and Hina Safdar have been directed to appear before the commission’s investigation team in their personal capacity on September 3 (tomorrow).

The regulator said it was examining unusual trading activity in Unity Foods shares and possible violations of securities laws. The individuals concerned have been asked to provide explanations, trading records and other relevant documents to assist the investigation.

The SECP has specifically sought a complete record from Muhammad Farrukh regarding Unity Foods shares that were allegedly pledged with banks. Meanwhile, Safdar Sajjad, Fahmeeda Amin and Hina Safdar have been asked to explain transactions involving the purchase and sale of Unity Foods shares.

The regulator said the four individuals had failed to appear before its investigation team in response to earlier notices. Following their non-appearance on August 31, the SECP issued final notices directing them to attend the proceedings and provide the required information and supporting documentation.

The SECP investigation team has now summoned all four individuals personally as part of its ongoing inquiry into the unusual trading patterns in the company’s shares.

The formal investigation into trading in Unity Foods shares has been underway since June 2. The inquiry is being conducted under Section 139 of the Securities Act, 2015, which empowers the SECP to investigate suspected violations of securities laws and regulations.

The regulator is examining whether the unusual trading activity involved any breach of applicable securities laws, including possible insider trading or other prohibited market practices.

The SECP has directed the individuals concerned to appear before the investigation team with complete trading records and all relevant supporting documents.

The outcome of the investigation will determine whether any regulatory violations occurred and whether further action is warranted under Pakistan’s securities laws.

The SECP’s latest move comes as the regulator continues to strengthen oversight of Pakistan’s capital markets and monitor trading activity to ensure transparency, investor protection and compliance with securities regulations.

Unity Foods’ share price was trading at Rs9.25 at the time this news was filed