SECP issues urgent warning about fraudulent groups promoting illegal investment platforms

The Securities and Exchange Commission of Pakistan (SECP) has issued an urgent warning about fraudulent groups promoting illegal investment platforms.

The SECP has detected unauthorised individuals and groups fraudulently promoting illegal investment and trading platforms through social media and WhatsApp groups.

These scams misuse the names of licensed brokerage houses and the pictures of celebrities, FinFluencers, and executives to appear legitimate.

An illegal app/website, “TSLWEA/ TSL WEALTH,” is impersonating the licensed broker, Topline Securities Limited.

Whereas a WhatsApp group named “A103-Topline Stock Strategies Hub” is also falsely associated with this scam.

While AI-generated ads featuring celebrities and influencers are being used to lure people into illegal WhatsApp groups.

CRITICAL WARNING:

“TSLWEA/ TSL WEALTH” is NOT LICENSED by the SECP. All such groups and platforms are ILLEGAL. Participating in them puts you at a VERY HIGH RISK OF FINANCIAL LOSS.

How to Protect Yourself:

ONLY trade through SECP-licensed brokers.
Verify a broker’s license officially before investing any money:

PSX Licensed Brokers: https://www.psx.com.pk/psx/resources-and-tools/TREC-Holders
PMEX Licensed Brokers: https://pmex.com.pk/pmex-home/existing-trec-holders/

Remain vigilant and avoid any platform promoted through unverified social media ads or WhatsApp groups.

SECP STRONGLY WARNS THE PUBLIC:

DO NOT DEPOSIT OR INVEST ANY FUNDS through the “TSLWEA/ TSL WEALTH” application or with any individuals/groups promoting such illegal investment platforms.

Earlier in July, the SECP achieved a historic milestone by registering a record 4,065 companies in July 2025—the highest monthly registrations to date, surpassing the previous record of 3,609 set in May 2025.

The SECP noted that 99.9% of incorporations were processed digitally, reflecting continued progress in streamlining regulatory procedures and improving ease of doing business. With this latest surge, the total number of registered companies in Pakistan has reached 262,309.

Private limited companies accounted for 57% of new registrations, followed by single-member companies at 39%. The remaining 4% comprised public unlisted companies, not-for-profit organizations, companies limited by guarantee, and limited liability partnerships

Top Sectors by Registration

The Information Technology and e-commerce sectors led with 862 new incorporations, followed by trading (530), services (468), and real estate development and construction (398).

Other active sectors included tourism and transport (295), food and beverages (203), education (148), marketing and advertisement (98), mining and quarrying (95), textiles (91), pharmaceuticals (86), agricultural farming (74), engineering (64), cosmetics and toiletries (59), and chemicals and healthcare (56).

An additional 482 companies were registered across various sectors, including fuel and energy, non-profits (under Section 42), auto and allied industries, power generation, and communications.

Foreign Investment and Licensing Activity

The SECP reported encouraging foreign investment trends, with 96 companies receiving capital from international investors across multiple jurisdictions.

As part of its efforts to enhance market access and financial inclusion, the SECP issued a total of 60 licenses during the month across multiple regulatory domains, including 5 in capital markets, 1 in insurance, 2 to non-banking financial companies (NBFCs), and 52 to not-for-profit associations.

SECP’s Ongoing Reform and Awareness Initiatives

Following its recent Registrars Conference, the SECP is launching a nationwide awareness campaign aimed at educating the business community on the advantages of formal incorporation.

These benefits include limited liability, separate legal entity status, enhanced credibility and scalability, perpetual succession, structured governance, tax efficiency, easier access to finance, and stronger brand protection.

The SECP reaffirmed its commitment to enhancing digital infrastructure, simplifying compliance, and promoting entrepreneurship to support Pakistan’s long-term economic growth and attract both local and foreign investment.