Islamabad, Nov 26: The Securities and Exchange Commission of Pakistan (SECP), through its centralized Supervision function, continues to strengthen oversight of capital markets and regulated businesses.
In a recent meeting, the Commission reviewed supervisory activities, with a special focus on pooled investments like mutual funds, insurance companies, and brokerage firms, and discussed measures to safeguard investors from illegal schemes.
The Commission stressed adherence to Standard Operating Procedures for resolving court cases, with 53 investigations and 30 criminal complaints currently under stay orders.
It commended the recently concluded review of the mutual fund industry, aimed at protecting investors, and highlighted plans to adopt a stronger supervisory model for pooled investments using advanced technology for early risk detection and timely actions.
For the insurance sector, SECP focused on improving business conduct and identifying vulnerable players to restore policyholders’ confidence.
It also noted its intervention led to Rs. 162 million in refunds to policyholders.
Additionally, a risk-based inspection of 64 securities brokers by a joint team from PSX, CDC, and NCC ensured compliance in areas like client asset segregation and margin practices, with no immediate risks identified.
However, The SECP’s proactive measures against unlawful deposit-taking, fraudulent schemes, and illegal digital lending apps included blocking 142 apps and reporting them to relevant authorities.
Over 50 entities involved in illegal deposit-taking were flagged, with steps like public warnings, URL blocks, and company closures initiated.
An MoU with FIA further bolsters efforts to protect the public from such activities.