Warning Against Fraudulent Investment Scheme
The Securities and Exchange Commission of Pakistan (SECP) has uncovered a fraudulent investment scheme being promoted by Syed Mohsin Sultan Shah under the name ‘MAG Ventures.’ The scheme is actively spreading through social media platforms, enticing the public with promises of business partnerships in meat exports to Gulf countries. Investors are lured with guaranteed ‘halal’ monthly profits ranging from 5 percent to 12 percent, allegedly backed by a fatwa.
Investment packages vary from Rs100,000 to Rs10 million, with assurances of security provided through stamp paper agreements and post-dated cheques. The scheme also claims ambitious expansion plans into various sectors such as 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 named MAG Ventures (SMC-Private) Limited under the Companies Act, 2017. Alongside this, two other companies—MAG Organic Meats (SMC-Private) Limited and MAG Builders and Developers (SMC-Private) Limited—have been established. However, funds are being collected through the bank account of an unincorporated entity known as ‘Galaxy Traders,’ as well as cryptocurrency wallets.
The SECP strongly advises the 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 and Developers (SMC-Private) Limited, or any associated entities. These entities are not authorised to collect deposits or offer investment schemes. Their names have been included in the SECP’s list of companies engaged in unauthorized activities, which can be found on the official SECP website. The matter has also been referred to relevant investigation authorities for further action.
It is important to note that a certificate of incorporation merely signifies the registration of a company and does not authorize 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 Drives Mutual Fund Transformation Through Strategic Initiatives
The Securities and Exchange Commission of Pakistan (SECP) has launched several strategic initiatives aimed at strengthening the mutual funds industry in the country. 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 are designed to facilitate market development, enhance investor confidence, improve transparency, and promote financial inclusion.
By being recognized as an SRO, MUFAP will play a pivotal role in industry development, investor education, and self-regulating the business conduct of the mutual fund sector. Its expanded mandate includes promoting ethical practices and professional competence within the industry, conducting and sharing research, assisting in the 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 standardized industry documentation and reporting, and ultimately lay the 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 modernizing 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 summarizing the session’s outcomes, along with a roadmap for implementing key recommendations, has been approved by the commission for circulation.
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