ISLAMABAD
\nReaffirming its strict commitment to safeguarding investors\u2019 interests and maintaining the integrity of Pakistan\u2019s capital markets, the Securities and Exchange Commission of Pakistan (SECP) has referred the case of M\/s Blink Capital Management (Private) Limited to the Federal Investigation Agency (FIA) for further investigation and appropriate action under the law.
\nChairman SECP Dr. Kabir Ahmed Sidhu said that the Commission will deal strictly with market abusers, manipulators and entities misusing their regulated status to deceive investors. \u201cSafeguarding investors\u2019 interests is paramount. SECP will pursue those who abuse the market or investors\u2019 trust, and will take all necessary regulatory and enforcement actions to protect investors and preserve market integrity,\u201d he said.
\nBlink Capital Management was a licensed futures broker and market maker of Pakistan Mercantile Exchange Limited (PMEX). The SECP initiated an investigation under Section 83 of the Futures Market Act, 2016, following complaints from investors alleging unauthorized collection of funds on promises of fixed returns and guaranteed repayment of principal.
\nThe investigation revealed that 35 complainants lodged claims amounting to Rs. 446.664 million.
\nA detailed financial trail involving 29 complainants and Rs. 408.6 million showed that substantial funds were transferred to accounts of Blink, its then CEO and director, as well as accounts linked with certain employees and associated persons. Significant amounts were also withdrawn in cash.
\nThe investigation found that investors had entered into agreements offering predetermined returns ranging from 3.7% per month to 48% per annum, with post-dated cheques issued as security.
\nBased on the available evidence, the investigation concluded that Blink was allegedly operating a Ponzi-type fraudulent investment scheme, involving illegal deposit-taking and offering guaranteed returns beyond the scope of its licensed activities.
\nThe investigation identified potential violations of the Companies Act, 2017, the Futures Market Act, 2016, and the Futures Brokers (Licensing and Operations) Regulations, 2018.
\nConsidering the gravity of the findings, the Commission approved referral of the matter to the FIA under Section 41B of the SECP Act, 1997, for further investigation and redressal of investors\u2019 grievances in accordance with law.
\nSECP also advised the public to exercise caution against unauthorized investment schemes, particularly those offering fixed or guaranteed returns.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD Reaffirming its strict commitment to safeguarding investors\u2019 interests and maintaining the integrity of Pakistan\u2019s capital markets, the Securities and Exchange Commission of Pakistan (SECP) has referred the case of M\/s Blink Capital Management (Private) Limited to the Federal Investigation Agency (FIA) for further investigation and appropriate action under the law. Chairman SECP Dr. Kabir […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-560981","post","type-post","status-publish","format-standard","category-business"],"yoast_head":"\n