SECP establishes CIU to detect illegal schemes early

ISLAMABAD  –  The Securities and Exchange Commission of Pakistan (SECP) has approved the establish­ment of a Corporate Intelli­gence Unit (CIU) to proactively identify registered companies suspected of operating Ponzi or pyramid schemes, taking de­posits or lending without the required licence, or conducting business beyond their approved objectives. The unit will moni­tor publicly available informa­tion, including news reports, social media and digital adver­tisements, to identify potential violations before complaints are received. Verified leads will be referred to the relevant SECP departments for inquiry or en­forcement action. Where ap­propriate, information may also be shared with agencies includ­ing the FIA, NCCIA, State Bank of Pakistan and NAB. The CIU is expected to strengthen the SECP’s early-warning capacity, support timely regulatory inter­vention and help prevent fur­ther investor losses. By tracking recurring patterns and link­ing information from multiple public sources, it will also help the Commission direct scrutiny towards emerging risks. SECP Chairman Dr Kabir said that the Corporate Intelligence Unit will strengthen the commis­sion’s risk-based surveillance by converting open-source in­formation into verified regula­tory leads. Early identification of suspicious activity can enable timely intervention, improve coordination across agencies and help protect investors be­fore losses escalate. The CIU is being 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.

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