The Securities and Exchange Commission of Pakistan (SECP) intensifies its regulatory oversight of capital markets and businesses, targeting illegal financial practices while enhancing investor confidence through advanced technology-driven initiatives.
SECP blocks 142 unauthorized digital lending apps and takes action against over 50 unregistered deposit-taking entities and fraudulent investment schemes.
Complaints concerning these entities are forwarded to the Federal Investigation Agency (FIA), Pakistan Telecommunication Authority (PTA), State Bank of Pakistan (SBP), and Google for further action.
To safeguard public interests, SECP signs a memorandum of understanding (MoU) with FIA for swift action against scams. Public warnings are issued, non-compliant companies are flagged on the SECP website, and legal proceedings are initiated to dissolve such entities.
During a recent Commission meeting, SECP reaffirms its commitment to investor protection and transparency, focusing on measures against illegal deposit-taking and financial fraud. Enhanced oversight includes mutual funds, insurance companies, and brokerage firms to ensure compliance and protect investor interests.
A joint inspection team from the Pakistan Stock Exchange, Central Depository Company, and National Clearing Company conducts risk-based inspections of 64 securities brokers, focusing on client asset segregation, margin collection, and pledged securities. Initial findings reveal no immediate risks, reflecting improved compliance in brokerage operations.
In the insurance sector, regulatory measures secure Rs162 million in refunds for policyholders, boosting public trust. SECP collaboration with public sector companies increases financial statement compliance, raising filing ratios from 34% to 51%.
To stabilize financial markets, SECP adopts global-standard, technology-driven supervisory models for early detection and high-risk intervention. However, delays in legal enforcement persist, with 53 investigations and 30 criminal complaints currently under court stay orders.
The SECP concludes a review of the mutual fund industry to mitigate risks and protect investors. Increased scrutiny of high-risk insurance entities ensures fair treatment of policyholders and sector stability. Proactive measures, such as blocking fraudulent apps, raising public awareness, and flagging non-compliant sponsors, underline SECP’s strategy to secure Pakistan’s financial landscape.
