SECP Moves to Curb Illegal Investment Schemes
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has approved the establishment of a Corporate Intelligence Unit (CIU) to identify suspected illegal financial schemes at an early stage and strengthen investor protection.
The unit will proactively monitor registered companies suspected of operating Ponzi or pyramid schemes, accepting deposits or providing loans without the required licences, or conducting business beyond their approved objectives.
According to the SECP, the CIU will monitor publicly available information, including news reports, social media posts and digital advertisements, to detect potential violations before formal complaints are received.
Verified leads will be referred to the relevant SECP departments for further inquiry or enforcement action. Where necessary, information may also be shared with other law enforcement and regulatory agencies, including the Federal Investigation Agency (FIA), the National Cyber Crime Investigation Agency (NCCIA), the State Bank of Pakistan (SBP) and the National Accountability Bureau (NAB).
The initiative is aimed at strengthening the commission’s early-warning capabilities, enabling timely regulatory intervention and preventing further financial losses to investors.
By identifying recurring patterns and linking information from multiple public sources, the unit will also help the SECP focus its scrutiny on emerging risks and suspicious business activities.
SECP Chairman Dr Kabir
SECP Chairman Dr Kabir said the establishment of the CIU would strengthen the commission’s risk-based surveillance by converting open-source information into verified regulatory leads.
He said the early identification of suspicious activities could facilitate timely intervention, improve coordination among relevant agencies and help protect investors before financial losses escalated.
The CIU is being established under Section 20 of the SECP Act, 1997, as part of the Chairman’s Secretariat. It will be headed by a director or additional director and supported by a team of two officers.
The commission expects the new unit to enhance its ability to detect potentially unlawful corporate activities and take preventive measures before they cause significant harm to investors.
About The Author
