The Securities and Exchange Commission of Pakistan (SECP) has accelerated its investigation into alleged insider trading involving the shares of Unity Foods Limited (UNITY). Consequently, the regulator has issued final notices to four individuals, including Unity Foods Chief Executive Officer Muhammad Farrukh, compelling them to appear in person tomorrow, September 3, 2026.
This action follows their failure to comply with previous regulatory summons earlier this week.
Background of the SECP Unity Foods Investigation
The SECP formally launched this inquiry on June 2, 2026, under Section 139 of the Securities Act, 2015, alongside the enabling provisions of the SECP Act, 1997. Specifically, the Commission’s Supervision Division, through the Brokers, CMIIs and Market Surveillance Department, is examining unusual trading patterns in UNITY shares to identify potential violations of capital market laws. Investigating Officer Adnan Ahmed is spearheading the proceedings.
Initially, the SECP dispatched notices on August 25, 2026, directing all four individuals to appear for examination on August 31, 2026. However, none of the individuals presented themselves before the investigation team, nor did they file requests to reschedule their hearings.
Final Notices Issued for In-Person Hearings
Due to their absence on August 31, the Commission issued final notices on the same day. The regulatory authority has ordered all four subjects to appear at the SECP Karachi Office, located on the 10th Floor, Dawood Center, M.T. Khan Road, Karachi. Furthermore, each individual must appear in a personal capacity, present their original CNIC, and produce relevant documentation to substantiate their claims.
The regulator is seeking distinct explanations and trading records from the involved parties:
- Mrs. Fehmida Amin: Scheduled to appear at 10:00 AM to record her statement and provide records regarding her trading in UNITY shares.
- Mrs. Hina Safdar: Scheduled to appear at 11:30 AM to record her statement concerning her trading activity in UNITY shares.
- Mr. Safdar Sajjad: Scheduled to appear at 02:30 PM for statement recording and examination regarding his trading transactions in UNITY shares.
- Mr. Muhammad Farrukh: Scheduled to appear at 04:00 PM. Rather than routine trading questions, the SECP has demanded a complete explanation and supporting evidence from the Unity Foods CEO regarding the pledge of UNITY shares with banks.
The SECP continues to examine the unusual stock movements as the September 3 deadline approaches.
