SECP cracks down on Ponzi, Pyramid investment schemes

The Securities and Exchange Commission of Pakistan has introduced rules targeting Ponzi and pyramid investment schemes, Mettis Global reported on November 3, 2026. The regulations define the prohibited schemes and bar financial rewards offered for bringing in new participants.

The rules also cover online fraudulent marketing and apply to companies regardless of whether they operate digitally. The SECP says firms running illegal schemes could face action, and has urged people to check a company’s credentials and be wary of promises of guaranteed or unusually high returns before investing.

The move sets clearer boundaries for investment promotions and recruitment-based schemes, placing compliance obligations across companies. For investors, the announcement is relevant to assessing the legitimacy of offers and the SECP’s oversight of investment-related activity.