KARACHI – Former Assistant Vice President of Investments at Habib Metropolitan Bank (HMB) Limited Zakir Somji has been convicted in the first insider trading case of Pakistan.
With a historic ruling, the court delivered a major milestone in regulatory and financial history. Securities and Exchange Commission of Pakistan (SECP) pursued the case, and termed the verdict as a major step toward ensuring integrity and transparency in the capital markets.
Somji was found guilty by the Sindh Special Court on June 14. During the trial, the court found that Mr Zakir violated Section 128 of the Securities Act, 2015 by engaging in insider trading using confidential information for personal gain.
The probe further revealed that Habib Metropolitan Bank (HMB) former official exploited insider knowledge related to HMB’s investment strategies between 2014, and 2016, and acquired 11.79 million shares of various companies, including over 1.23 million shares directly from HMB.
He later sold over 11.83 million shares, of which more than 4.91 million were sold back to the bank, generating an illegal profit of Rs 2.86 million.
The court further slapped Rs 8.59 million, three times the amount of the unlawful gains. Somji has been ordered to deposit the amount within seven days or face imprisonment until the fine is fully paid.
“The conviction sends a strong message that market abuse and regulatory violations will not be tolerated,” the SECP said in a statement. “This judgment not only reinforces our commitment to investor protection but also sets a powerful precedent for future enforcement actions.”
