Abstract

The legal mechanism that has been adopted for insider trading in Pakistan focuses on the associated and connected person includes Securities and Exchange Ordinance 1969 and Companies Ordinance 1984. The paper discusses the key issues regarding the associated and connected person and legal regime regarding the effectiveness of insider trading in Pakistan. This paper examines the existing laws in Pakistan, which specifically focus upon market-oriented regulations and economic development. The focus of this paper is to highlight the legal framework and connectivity between associated and connected persons affiliated with insider trading and other prohibitions which are provided in the SECP regularities of Pakistan.To tackle the misleading information and devaluation of market prices through insider trading is also part of this paper, along with some basic information like defrauding the market and, consequently, the shareholder sat large will also be discussed in this paper.

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