The News reported that the board of Pakistan Petroleum Limited has sought explanation from its chief financial officer after the Securities and Exchange Commission of Pakistan unearthed insider trading by Pakistan Petroleum Provident Fund Trust Company Private Limited.
The sources said that Mr Kamran Wahab Khan CFO of Pakistan Petroleum Limited will appear before the board of directors in its next meeting scheduled for December 21 to defend his position.
Earlier, the SECP issued two orders for insider trading against Pakistan Petroleum Provident Fund Trust Company Limited and the chief financial officer of PPL accusing the latter of illegally disclosing confidential information about the impending financial results of the company and thereby manipulating the share price in the stock market.
However, Mr Saquib Hanif the spokesperson for the company categorically denies allegations of wrongdoing on Khan’s part and insists that Khan is only on leave.
Senior officials of the company on the condition of anonymity have demanded stern action against Khan, if he fails to persuade the board of his innocence.
Pakistan Petroleum Provident Fund Trust Company Limited is a private limited company, which manages the funds of the employees of the Pakistan Petroleum Limited.
According to the SECP notice, a perusal of trading data of the Karachi Stock Exchange Limited from August 7 to August 9 shows that Pakistan Petroleum Limited Senior Provident Fund managed by PPPFTCL bought 662,500 shares of PPL just a few days prior to the announcement of the financial results of the company for the year ended June 30th 2012. The matter was taken up with the PPL and subsequently show cause notices were issued to PPPFTCL and employees of the PPL on suspicions of insider trading in the scrip.