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Pakistan Stock Market Probe Involves American Experts

A team comprising of American forensic investigators and officials from the Securities and Exchange Commission of Pakistan (SECP) are set to begin a probe into the March 2005 stock market crash on Monday. According to sources in the Securities and Exchange Commission of Pakistan, the American forensics team is comprised of accountants, data mining consultants and fraud ?risk management specialists?. Their participation in the investigation would hinge on their ability to research and then explain their analyses of the causes and effects of the Karachi Stock Exchange crash in March of last year.

An independent task force was set up in Pakistan to review the stock market situation, and presented its report five months after the events, in August 2005. It contained names of a dozen high-profile brokers believed to be involved in manipulating the carry-over transaction and short-selling, and recommended that outside investigators be brought in to help out.

The chief of Pakistan?s top corporate watchdog declined to reveal how many or which SECP officials had been included in the team, but said of those coming to Pakistan to aid in the investigation that ?This is a strong team. They will be ready to start forensic investigations as of this Monday.? SECP Chairman Raziur Rehman was quoted as saying the above this past Sunday.