SECP Refers Rs446m Alleged Investment Fraud To FIA

The Securities and Exchange Commission of Pakistan (SECP) has referred a Rs446.664 million alleged investment fraud case involving Blink Capital Management (Private) Limited to the Federal Investigation Agency (FIA) for further investigation and legal action.

Blink Capital Management was a licensed futures broker and market maker of Pakistan Mercantile Exchange Limited (PMEX), with offices in Lahore, Karachi and Islamabad. The case surfaced in June 2025 after investors complained that the company was accepting deposits on fixed-profit terms, promising guaranteed returns and issuing post-dated cheques as security, but allegedly failed to return their investments and promised profits.

Following the complaints, PMEX froze funds, restricted Blink's market-making activities, imposed a Rs1 million penalty and suspended its trading rights. Blink later closed its offices and disabled its website.

The SECP subsequently launched an investigation under the Futures Market Act, 2016. Investigators found that 35 complainants had submitted claims totalling Rs446.664 million, with agreements generally offering fixed returns ranging from 3.7% per month to 48% annually.

A detailed financial-trail review covering 29 complainants and Rs408.6 million in claims found that Rs360.17 million could be traced through the bank accounts of identified beneficiaries. Of this amount, Rs288.32 million was transferred to Blink, Rs10.35 million to then-CEO Hassan Maqsood, and additional funds to director Muhammad Farooq, employees and associated accounts.

The investigation also traced Rs60 million to an account titled “Blink Capital Management”, registered as a sole-proprietorship business belonging to employee Ali Fida. The funds were subsequently transferred to Fida's personal account, with portions withdrawn in cash or paid to certain complainants.

The SECP said the evidence indicated that Blink had allegedly been operating a Ponzi-type fraudulent investment scheme, unlawfully collecting deposits from the public and offering guaranteed returns beyond the scope of its licensed activities.

The regulator identified potential violations of the Companies Act, Futures Market Act and Futures Brokers (Licensing and Operations) Regulations.

The SECP has now approved referral of the case to the FIA under Section 41B of the SECP Act, 1997, for further investigation and to address investors' grievances.

SECP Chairman Dr Kabir Ahmed Sidhu said the regulator would take strict action against entities misusing their regulated status to deceive investors and stressed that protecting investors and maintaining market integrity remained a priority.

The SECP has also urged the public to remain cautious of unauthorised investment schemes, particularly those promising fixed or guaranteed returns.