ISLAMABAD: The Securities and Exchange Commission of Pakistan has intensified its probe into insider trading, including unusual transactions in the Unity Foods shares. The SECP has summoned the CEO of the company and three others for probe on Thursday.
SECP issued final notices to Farrukh, Safdar Sajjad, Fahmida Amin and Hina Safdar after they failed to appear before investigators on August 31.
The regulator directed all four individuals to appear personally before its investigation team and provide relevant information and records.
Investigators seek trading records
SECP is examining unusual trading activity in Unity Foods shares and possible breaches of securities laws.
The regulator has asked Farrukh to provide complete details of Unity Foods shares pledged with banks.
Meanwhile, Sajjad, Amin and Hina Safdar must explain their purchases and sales of Unity Foods shares.
They must also submit relevant trading records and supporting documents to investigators.
The formal investigation began on June 2 under Section 139 of Pakistan’s Securities Act, 2015.
SECP launched the probe to determine whether unusual share transactions involved violations of securities regulations.
FIA case adds pressure
The investigation comes shortly after the Federal Investigation Agency registered a criminal case against former Unity Foods management.
The case concerns alleged financial irregularities, including discrepancies of around Rs44.7 billion between published accounts and internal records.
The SECP investigation reportedly preceded the FIA’s action and examined financial issues involving the company.
Unity Foods was incorporated in Pakistan as a private limited company in 1991 before becoming a public limited company the same year.
The company initially operated in the textile sector under the name Taha Spinning Limited.
However, operating losses and financial difficulties later prompted the company to change its main business.
Unity Foods subsequently shifted toward edible oil extraction, refining and related activities under its current name.
