ISLAMABAD – The Securities and Exchange Commission of Pakistan (SECP) has identified a prima facie fraudulent investment/deposit-taking scheme being aggressively promoted by Syed Mohsin Sultan Shah under the name “MAG Ventures” through various social media platforms.
The scheme lures the public with offers of business partnerships in meat exports to Gulf countries, promising guaranteed “halal” monthly profits ranging from 5 percent to 12 percent, allegedly supported by a fatwa. Investment packages range from Rs100,000 to Rs10 million, with investors being assured security through stamp paper agreements and post-dated cheques. The scheme also claims plans to expand into multiple sectors, including real estate development, supermarkets, automotive trading, cafés, fashion and beauty, Apple product retail, and global operations with a headquarters in Dubai.
To create an illusion of legitimacy, Syed Mohsin Sultan Shah has incorporated a company under the Companies Act, 2017 with a similar name, MAG Ventures (SMC-Private) Limited, in the trading sector, along with two other companies: MAG Organic Meats (SMC-Private) Limited and MAG Builders & Developers (SMC-Private) Limited. However, funds are being collected through the bank account of an unincorporated entity, “Galaxy Traders,” and cryptocurrency wallets.
The SECP strongly warns the general public not to invest or deposit funds with “MAG Ventures,” “Galaxy Traders,” MAG Ventures (SMC-Private) Limited, MAG Organic Meats (SMC-Private) Limited, MAG Builders & Developers (SMC-Private) Limited, or any other associated entity, as these entities are not authorised to collect deposits or offer investment schemes under any arrangement. The names of these companies have been included in the SECP’s list of companies engaged in unauthosized activities, available on the official SECP website. The matter has also been referred to relevant investigation authorities for further action. The general public is reminded that a certificate of incorporation merely signifies the registration of a company and does not authorise it to raise deposits or launch investment schemes. Investors are urged to verify the legitimacy of any investment offer through the SECP’s official channels before investing.
SECP IGNITES MUTUAL FUND TRANSFORMATION THROUGH STRATEGIC INITIATIVES
The Securities and Exchange Commission of Pakistan (SECP) has taken several strategic initiatives to strengthen Pakistan’s mutual funds industry. These measures include the registration of the Mutual Funds Association of Pakistan (MUFAP) as a Self-Regulatory Organisation (SRO), the approval of a comprehensive Digital Asset Management Companies (Digital AMC) Framework, and the formation of a committee for the development of Exchange Traded Funds (ETFs) in Pakistan. These steps aim to facilitate market development, enhance investor confidence, improve transparency, and promote financial inclusion.
By being recognised as an SRO, MUFAP will now play a pivotal role in industry development, investor education, and self-regulating the business conduct of the mutual fund sector. MUFAP’s expanded mandate includes promoting ethical practices and professional competence within industry, conducting and sharing research, assisting in development of industry standards aligned with global best practices, overseeing compliance through inspections, arbitrating disputes, and supporting financial inclusion, investor outreach, and education while implementing measures for investor protection. Additionally, MUFAP will review constitutive documents such as trust deeds and offering documents, undertake standardised industry documentation and reporting, and ultimately lay groundwork for a more responsive, transparent, and investor-friendly mutual fund ecosystem.
The approval of the Digital AMC Framework will enable technological innovation, broaden market access, and foster industry growth by reducing entry barriers, expanding retail participation, and providing end-to-end digital access to mutual fund investments. Furthermore, the committee for ETF development has been tasked with reviewing the existing framework and international best practices to recommend reforms aimed at increasing investor participation and eliminating inefficiencies hindering the growth of this segment.
Recently, the SECP hosted a Mutual Funds Industry Focus Group Session, bringing together key stakeholders and industry professionals. The session gathered input on strategic priorities, including expanding infrastructure finance through mutual funds, enhancing liquidity management and governance, and modernising distribution models. It also addressed structural and cultural barriers to women’s financial inclusion and explored the promotion of Systematic Investment Plans (SIPs) as a tool for disciplined, long-term savings. A white paper summarising the session’s outcomes, alongwith a roadmap for implementing key recommendations, has been approved by the commission for circulation.
