Reaffirming its strict commitment to safeguarding investors’ interests and maintaining the integrity of Pakistan’s 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.
SECP refers blink Capital management Case to FIA over alleged Rs. 446.6 million fraud
ISLAMABAD, Aug 08 (APP): Reaffirming its strict commitment to safeguarding investors’ interests and maintaining the integrity of Pakistan’s 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 Ahmed Sidhu said that the Commission will deal strictly with market abusers, manipulators and entities misusing their regulated status to deceive investors. “Safeguarding investors’ interests is paramount. SECP will pursue those who abuse the market or investors’ trust, and will take all necessary regulatory and enforcement actions to protect investors and preserve market integrity,” he said.
Blink 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.
The investigation revealed that 35 complainants lodged claims amounting to Rs. 446.664 million. A 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 Significant amounts were also withdrawn in cash.
The 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.
Based 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.
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 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’ grievances in accordance with law.
The SECP also advised the public to exercise caution against unauthorized investment schemes, particularly those offering fixed or guaranteed returns.
