Lahore: On August 2, 2024, an executive at MCB Bank Limited conducted transactions involving the purchase and subsequent sale of shares, triggering a review under PSX regulations. This sequence of trades and their potential implications are set to be scrutinized in the upcoming board meeting.

According to information available from the Pakistan Stock Exchange (PSX), Mr. Farid Ahmad, an executive at MCB Bank, engaged in both buying and selling 100 shares of the bank on the same day. The shares were purchased at a price of PKR 228.42 and sold for PKR 226.22, resulting in a net loss of PKR 220. These transactions were carried out through CDC, a central depository company, indicating that they were conducted in the 'Ready' market.

The PSX regulations, specifically under Clause No. 5.6.4, mandate the reporting and review of such transactions by the board of directors. This clause is particularly concerned with the swift trading activities of bank insiders and aims to ensure transparency and fairness in such dealings. The upcoming board meeting will also assess whether these actions constituted non-compliance with set guidelines.

Furthermore, as the holding period for the shares was less than six months, specifically within the same day, the transactions fall outside the purview of Section 105 of the Securities Act, 2015, which governs longer-term holdings and their disclosure requirements.