Staff Reporter
KARACHI: TRG Pakistan has violated PSX rules and regulations and its previous track record to dip down the share price unexpectedly proves its management is involved in artificial price manipulation.
According to PSX rules as required under Clause 5.6. 1/D of PSX Regulations that, no Director, CEO or Company Executive shall, directly/indirectly, deal in the shares of the Company in any manner during the closing period before result announcement.
On 22 September 2022, TRG Pakistan announced its Board meeting would be held on 29 September 2022 to declare financial accounts for year ended June 30, 2022 and declared their ‘Closed Period’ from September 22, 2022 to September 29, 2022, under clause 5.6.1 /D of PSX rules and regulations.
On September 27, 2022 TRG issued Disclosure of Interest by Director CEO, or Executive of listed company and their spouse under PSX rules and regulations 5.6.1/D that Green Tree Holding as their substantial buyer bought share 4848506 at 120.86 in Ready market, raised a question here how a company purchased its own shares under PSX rules and regulations during the closure period.
The present situation here is showing no check and balance by Pakistan Stock Exchange management (PSX) and the state regulator Security Exchange Commission of Pakistan (SECP). How any PSX listed Company is allowed to manipulate its own share price leaves a question mark on the regulator’s performance.
PSX failure to respond timely creates more uncertainty in investors regarding self-purchasing of shares by TRG during its closure period.
While some of the PSX investors have feared that TRG’s possible violation of PSX rule and regulations ‘will not become a new bubble like Callmate in 2008. Both the regulators are contacted by ‘The Financial Daily’ reporting desk but they did not give their version in this regard.
