The Securities and Exchange Commission of Pakistan (SECP) is intensifying its regulatory oversight of capital markets and companies, targeting illegal financial practices while enhancing investor confidence through advanced technology-based initiatives.
The Securities and Exchange Commission (SECP) bans 142 unauthorized digital lending apps and takes action against more than 50 unregistered deposit-taking entities and fraudulent investment schemes.
Complaints regarding 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 protect public interests, the SEC signed a memorandum of understanding with the financial intelligence agency to take swift action against fraud. Public warnings are issued, non-compliant companies are flagged on the SEC’s website, and legal proceedings are initiated to dissolve these entities.
During its recent committee meeting, the SEC reaffirmed 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 investors’ interests.
A joint inspection team from Pakistan Stock Exchange, Central Depository Corporation and National Clearing Corporation is conducting risk-based inspections of 64 stock brokers, focusing on segregation of client assets, margin collection, and pledged securities. Preliminary results do not reveal any immediate risks, reflecting improved compliance in mediation processes.
In the insurance sector, regulatory measures succeeded in securing recovery of Rs 162 million for policyholders, enhancing public confidence. The SEC’s collaboration with public sector companies increases financial statement compliance, raising filing ratios from 34% to 51%.
To stabilize financial markets, the Securities and Exchange Commission of Pakistan is adopting world-class, technology-driven supervisory models for early detection and intervention of high risks. However, delays in legal enforcement continue, as there are currently 53 investigations and 30 criminal complaints under court stay orders.
The Securities and Exchange Commission 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 applications, raising public awareness, and identifying non-compliant sponsors underscore the SEC’s strategy to secure Pakistan’s financial landscape.