ISLAMABAD: 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 over alleged investor fraud involving Rs446.664 million.
The move reflects SECP’s ongoing efforts to protect investors and maintain transparency and integrity in Pakistan’s capital markets.
SECP Chairman Dr. Kabir Ahmed Sidhu said the regulator would take strict action against market abusers, manipulators and entities that misuse their regulated status to deceive investors.
“Safeguarding investors’ interests is paramount,” he said, adding that SECP would pursue those who abuse the market or investors’ trust and take necessary regulatory and enforcement measures.
Blink Capital Management was a licensed futures broker and market maker of the Pakistan Mercantile Exchange Limited (PMEX). SECP launched an investigation under Section 83 of the Futures Market Act, 2016, following complaints from investors alleging unauthorized collection of funds in exchange for fixed returns and guaranteed repayment of principal.
The investigation found that 35 complainants had submitted claims totaling Rs. 446.664 million. A detailed financial trail involving 29 complainants and Rs. 408.6 million showed that substantial funds were transferred to accounts belonging to Blink, its former CEO and director, as well as certain employees and associated persons.
The investigation also found that significant amounts were withdrawn in cash.
According to the findings, investors had entered into agreements promising predetermined returns ranging from 3.7% per month to 48% per annum. Post-dated cheques were reportedly issued as security for the investments.
Based on the available evidence, the investigation concluded that Blink was allegedly operating a Ponzi-type fraudulent investment scheme, involving illegal deposit-taking and the offering of guaranteed returns beyond the scope of its licensed activities.
The investigation identified potential violations of the Companies Act, 2017, the Futures Market Act, 2016, and the Futures Brokers (Licensing and Operations) Regulations, 2018.
Considering the seriousness of the findings, SECP approved the referral of the case to the FIA under Section 41B of the SECP Act, 1997, for further investigation and appropriate action under the law.
SECP has also advised the public to remain cautious when dealing with unauthorized investment schemes, particularly those offering fixed or guaranteed returns.
