Pakistan regulator approves unit to detect pyramid schemes — Dawn

The Securities and Exchange Commission of Pakistan (SECP) has approved the establishment of a Corporate Intelligence Unit. It will identify registered companies suspected of organizing pyramid schemes or Ponzi schemes, as well as accepting deposits or providing loans without a license.

The unit will also focus on companies that may be operating outside the approved purposes of their activities.

Monitoring open sources

The new structure will track publicly available information, including news reports, social media and digital advertising. Its task will be to identify potential violations even before complaints are received, Dawn reports.

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Verified information will be forwarded to the relevant SECP departments for review or enforcement action. If necessary, it may also be shared with the FIA, NCCIA, the State Bank of Pakistan and NAB.

Early risk detection

The SECP expects that the unit will strengthen early warning capabilities, facilitate timely regulatory intervention and help prevent further investor losses. It will track recurring patterns and combine information from several open sources to direct the commission's attention to emerging risks.

SECP Chair Dr. Kabir stated that the Corporate Intelligence Unit will strengthen the commission's risk-based oversight by turning information from open sources into verified data for regulatory action. It is being established under Section 20 of the SECP Act 1997 within the office of the commission's chair.