The Securities and Exchange Commission of Pakistan (SECP) has approved a new Corporate Intelligence Unit to detect suspected financial scams, illegal lending and other regulatory violations before complaints are filed.

The unit will monitor publicly available information, including news reports, social media posts and digital advertisements, to identify companies potentially involved in Ponzi schemes, pyramid schemes, unlicensed deposit-taking or lending, and activities outside their approved business scope.

Once potential violations are verified, the information will be referred to the relevant SECP departments for investigation or enforcement action.

The commission may also share information with other law enforcement and regulatory bodies, including the Federal Investigation Agency (FIA), National Cyber Crime Investigation Agency (NCCIA), State Bank of Pakistan (SBP) and National Accountability Bureau (NAB), where necessary.

SECP Chairman Dr. Kabir said the initiative would strengthen risk-based monitoring by converting publicly available information into verified leads for regulatory action.

He said early detection could help authorities intervene sooner, improve coordination between agencies and protect investors from mounting financial losses.

The unit will also examine recurring patterns and combine information from different public sources to identify emerging risks and guide the commission’s regulatory scrutiny.

The CIU will operate under Section 20 of the SECP Act, 1997, within the chairman’s secretariat. It will be headed by a director or additional director and supported by two officers.