SECP sets up intelligence unit to detect Ponzi schemes, unlicensed lending

The Securities and Exchange Commission of Pakistan (SECP) has approved the establishment of a Corporate Intelligence Unit to identify registered companies suspected of running Ponzi or pyramid schemes, taking deposits or lending without a license, or operating beyond their approved business objectives.

The unit will monitor publicly available information, including news reports, social media platforms and digital advertisements, to identify potential regulatory violations before formal complaints are received, the SECP said.

Verified leads will be referred to relevant departments within the commission for inquiry or enforcement action. Where necessary, information may also be shared with the Federal Investigation Agency, National Cyber Crime Investigation Agency, State Bank of Pakistan and National Accountability Bureau.

How will the SECP's Corporate Intelligence Unit work?

The unit will use publicly available information to identify suspicious corporate activity at an earlier stage, verify potential regulatory leads and refer them for further scrutiny. The SECP says this could allow earlier intervention, improve coordination with other agencies and help prevent investor losses from escalating.

The Corporate Intelligence Unit will also identify recurring patterns and link information gathered from multiple public sources to help the regulator spot emerging risks and focus its scrutiny accordingly.

SECP Chairman Dr. Kabir Ahmed Sidhu said the unit would strengthen the commission’s risk-based surveillance by converting open-source information into verified regulatory leads.

The initiative is intended to strengthen the SECP’s early-warning capabilities and allow regulatory action to begin before suspected misconduct results in larger investor losses.

Where will the new unit sit within the SECP?

The Corporate Intelligence Unit is being established under Section 20 of the Securities and Exchange Commission of Pakistan Act, 1997, as part of the chairman’s secretariat.

The SECP said the unit would support timely regulatory intervention by identifying potentially suspicious activity before formal complaints reach the commission.