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 detect suspected illegal financial schemes at an early stage and strengthen investor protection. The initiative aims to identify suspicious business activities before they cause significant financial losses.
The new unit will proactively monitor registered companies suspected of running Ponzi schemes or pyramid schemes, accepting deposits without proper authorisation, or providing loans without the required licences.
According to the SECP, the Corporate Intelligence Unit will track publicly available information, including news reports, social media posts and digital advertisements. This approach will help the regulator identify potential violations before investors file formal complaints.
The CIU will refer verified leads to the relevant SECP departments for further investigation or enforcement action. Where necessary, the commission may also share information with other regulatory bodies and law enforcement 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 aims to strengthen the SECP’s early-warning capabilities and enable timely regulatory intervention. By identifying suspicious financial activities sooner, the commission hopes to prevent illegal investment schemes from spreading and reduce potential losses for investors.
The unit will also analyse recurring patterns and connect information from multiple public sources. This approach will help the SECP identify emerging financial risks, prioritise investigations and focus its regulatory scrutiny on suspicious companies and business activities.
The establishment of the Corporate Intelligence Unit marks a step towards stronger financial oversight in Pakistan. It also highlights the regulator’s efforts to detect potential financial misconduct proactively and improve investor protection.
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 has 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
