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Pakistan calls on firms to register people with access to inside information

Chris Hamblin, Editor, London, 9 June 2016

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The Securities and Exchange Commission of Pakistan has promulgated the Access to Inside Information Regulations 2016, obliging all listed companies to maintain registers of people with access.

Every listed company is now required to nominate a 'senior management officer' and make him responsible for entering or removing names in the register "in a timely manner." He must also list the reasons for inclusion in each case, along with everyone's contact numbers and email addresses.

The SECP was exercising its power to make the regulation under s169(1) Securities Act 2015. Pakistan's definition of 'insider trading' is to be found in s128(2). It includes an 'insider person' transacting any deal, directly or indirectly, using inside information involving listed securities to which the inside information pertains or using others to transact such deals; any other person to whom inside information has been passed or disclosed by an insider person transacting any deal using such inside information; a transaction by any person who knows or ought to know that the information is inside information; or an insider person passing on inside information to anyone else. 'Insider trading' does not, however, cover any transaction performed under an agreement that was concluded before the time of gaining access to inside information or any disclosure required by law.

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