The Securities and Exchange Commission of Pakistan (SECP) has referred the case of Blink Capital Management (Private) Limited to the Federal Investigation Agency (FIA) for further investigation after identifying alleged irregularities involving Rs. 446.664 million collected from investors.
The SECP said 35 complainants claimed a combined Rs. 446.664 million, while its investigation traced financial transactions involving 29 complainants and approximately Rs. 408.6 million. The regulator found that funds had been transferred to accounts associated with Blink Capital, its former chief executive and director, as well as certain employees and other linked individuals.
Blink Capital was a licensed futures broker and market maker of the Pakistan Mercantile Exchange Limited (PMEX). The SECP launched its investigation after receiving complaints that the company had allegedly obtained money from investors by offering fixed returns and assurances that their principal would be repaid.
According to the regulator, investors were offered predetermined returns ranging from 3.7% per month to 48% per year. Post-dated cheques were also reportedly provided to investors as security against their investments.
The investigation further found that substantial amounts of the funds were withdrawn in cash. Based on the evidence available, the SECP said the activities allegedly resembled a Ponzi-type investment scheme, involving unauthorized deposit-taking and promises of guaranteed returns beyond the company’s permitted business activities.
The regulator identified potential breaches of the Companies Act, 2017, Futures Market Act, 2016, and Futures Brokers (Licensing and Operations) Regulations, 2018.
In view of the findings, the SECP approved sending the matter to the FIA under Section 41B of the SECP Act, 1997, for further investigation and action under the law, including addressing the grievances of affected investors.
SECP Chairman Dr. Kabir Ahmed Sidhu said the regulator would take strict action against market participants who misuse their regulated status or investor confidence.
The SECP has also urged investors to remain cautious of unauthorized investment schemes, particularly those promising fixed or guaranteed returns.
