SECP Refers Blink Capital to FIA Over Rs446.6m Alleged Fraud

The Securities and Exchange Commission of Pakistan has referred Blink Capital Management to the Federal Investigation Agency after an investigation concluded the licensed futures broker was allegedly operating a Ponzi-type scheme that collected over Rs446.6 million from 35 investors.

The referral, approved under Section 41B of the SECP Act, 1997, follows complaints first received in June 2025. SECP Chairman Dr Kabir Ahmed Sidhu said the commission will deal strictly with entities misusing their regulated status to deceive investors.

From Licensed Broker to Alleged Fraud

Blink Capital Management was a licensed futures broker and market maker of Pakistan Mercantile Exchange Limited, with its registered office in Lahore and branches in Karachi and Islamabad. Its directors and shareholders included then CEO Hassan Maqsood and director Muhammad Farooq.

The case began when PMEX received complaints alleging Blink Capital was accepting deposits on a fixed-profit basis while guaranteeing repayment through post-dated security cheques. PMEX froze funds, restricted market-making, imposed a Rs1 million penalty and suspended Blink Capital's trading rights. Blink Capital closed its offices and disabled its website. The SECP launched a formal investigation under Section 83 of the Futures Market Act, 2016, on August 15, 2025.

The Financial Trail

The SECP traced Rs360.17 million through bank accounts linked to Blink Capital and its associates. Of this, Rs288.32 million went to Blink, Rs10.35 million to Hassan Maqsood, and Rs500,000 to Muhammad Farooq and his spouse. Another Rs60 million was transferred to a sole-proprietorship account in the name of Ali Fida, the chief operating officer, with Rs1 million more to Fida as COO. Funds also moved through employee accounts and significant sums were withdrawn in cash. Approximately Rs90 million transferred to PMEX was subsequently withdrawn, with a major portion deposited into the accounts of Maqsood and Farooq. Of the 35 complainants, Blink had opened trading accounts with PMEX for only seven, all inactive.

The Scheme and the Warning

The SECP found Blink Capital entered into agreements with investors, mostly for two years, offering fixed returns from 3.7 percent per month to 48 percent per annum, executed on stamp paper and mostly signed by Hassan Maqsood. Post-dated cheques were issued as guarantees. The agreements were witnessed by Ali Fida and, in some cases, by Blink employees.

The investigation identified potential violations of the Companies Act, 2017, the Futures Market Act, 2016, and the Futures Brokers Regulations, 2018, specifically on public deposit-taking and exceeding licensed scope. With the referral, criminal investigators will now pursue the case. The SECP advised the public to exercise caution against unauthorized schemes offering fixed or guaranteed returns and urged investors to verify an entity's legal status and authorised activities before committing funds.