FIA to Investigate Alleged Rs. 44.6 Crore Investment Scam At Blink Capital
The Securities and Exchange Commission of Pakistan (SECP) has referred the case of Blink Capital Management (Private) Limited to the Federal Investigation Agency (FIA) after an investigation found allegations of investment fraud involving Rs. 446.664 million.
The case was referred to the FIA for further investigation and legal action after 35 investors filed claims against the company, according to the SECP.
Blink Capital was a licensed futures broker and market maker of the Pakistan Mercantile Exchange Limited (PMEX).
SECP launched an investigation under the Futures Market Act, 2016, following complaints that the company had allegedly collected funds from investors by promising fixed returns and guaranteed repayment of their principal.
The regulator’s investigation found that claims from 35 complainants totaled Rs. 446.664 million. It also traced transactions involving 29 complainants and Rs. 408.6 million, with funds transferred to accounts belonging to Blink, its then CEO and director, as well as certain employees and associated persons. The investigation also identified significant cash withdrawals.
According to the SECP, investors had entered into agreements promising predetermined returns ranging from 3.7 percent per month to 48 percent annually, with post-dated cheques provided as security.
Based on the evidence available to it, the SECP said the company was allegedly operating a Ponzi-type fraudulent investment scheme, involving illegal deposit-taking and promises of guaranteed returns outside the scope of its licensed activities.
The investigation identified potential violations of the Companies Act, 2017, Futures Market Act, 2016, and Futures Brokers (Licensing and Operations) Regulations, 2018.
The SECP approved the referral under Section 41B of the SECP Act, 1997, seeking further investigation and action by the FIA, as well as redressal of investors’ grievances in accordance with the law.
SECP Chairman Dr. Kabir Ahmed Sidhu said the regulator would take strict action against market participants who misuse their regulated status or investor trust.
The regulator also warned the public to remain cautious about unauthorized investment schemes, particularly those offering fixed or guaranteed returns.
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