SECP issues official response after reports of probe into PSX’s deliberate decline

2026-02-27 - 06:54

ISLAMABAD – The Securities and Exchange Commission of Pakistan (SECP) has firmly rejected reports claiming that it was investigating allegations of a deliberate drop in the Pakistan Stock Exchange (PSX). In a statement, it clarified that there was no ongoing investigation into such claims or suggestions that brokers had conspired to manipulate market conditions. The SECP emphasized that its market surveillance operations are continuously carried out using advanced automated systems to monitor trading activities. It clarified that stock market fluctuations are influenced by various economic and financial factors, and it is misleading to link these movements to any single event or to speculate on possible conspiracies. Earlier, it emerged that SECP has decided to initiate an investigation into the sharp downturn at the Pakistan Stock Exchange (PSX), which has seen a loss of over 20,000 points since the transition to the T+1 settlement cycle earlier this month. The decision, according to reports, came after accusations surfaced that brokers may have colluded to artificially crash the market following the implementation of the new settlement system. The PSX faced a dramatic plunge in its value since February 9, when the T+1 cycle was officially introduced, raising concerns among regulators and market participants. Reports said brokers and investors who previously made substantial earnings from the interest generated under the old T+2 system have seen their profits vanish with the switch to T+1, fueling suspicions that the downturn may be orchestrated. SECP to probe ‘artificial crash’ of 20,000 points at PSX by brokers