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Investing safely

How to check an investment is genuine, buy shares and mutual funds safely, and complain to the Securities and Exchange Commission of Pakistan (SECP) if something goes wrong.

Last reviewed 12 October 2026

The Securities and Exchange Commission of Pakistan (SECP) regulates companies, the stock market, mutual funds, insurance and other non-bank financial businesses. Before you invest, check that the business is allowed to take your money and that you understand the risks.

Check the business is licensed

A company registered with the SECP is not automatically allowed to take investments or deposits from the public. Businesses such as brokers, asset management companies, leasing companies and modarabas need a separate licence for that work.

Before you invest:

  • search for the business on the SECP website (opens in new tab) and check it holds a licence for the service it offers
  • do not rely on certificates or approval letters shown to you, as fraudsters use fake ones
  • check the SECP's warnings about companies running unauthorised investment schemes

You can report a suspected scam to the SECP at [email protected].

Warning signs of a scam

Be careful if someone:

  • promises high or guaranteed returns with little or no risk
  • asks you to bring in friends or family, or to pay in more money, to earn your profit
  • pressures you to decide quickly
  • asks you to pay into a personal bank account

Schemes like these often pay early investors with money from new investors, and collapse when new money stops.

Buying shares

Shares in listed companies are traded on the Pakistan Stock Exchange (PSX) (opens in new tab). To buy shares safely:

  1. Choose a broker from the PSX list of brokers (opens in new tab).
  2. Open the trading account and the Central Depository Company (CDC) account in your own name. The SECP does not take up complaints about trades made through someone else's account.
  3. Check the trade confirmation your broker sends after every trade, and the account statement it sends every quarter.

Your shares are held electronically by the Central Depository Company (CDC) (opens in new tab). For more control, you can open a CDC Investor Account that you manage yourself, and use your broker only to place trades.

If you have a problem with your broker, complain to the broker first. If it is not resolved, you can complain to the PSX (opens in new tab), which also offers arbitration.

Mutual funds and pension funds

Mutual funds and voluntary pension funds are managed by asset management companies licensed by the SECP. The fund's money is held by an independent trustee, not by the management company.

In March 2026, the SECP made it mandatory for people who advise on or sell mutual funds and pension funds to be members of the Mutual Funds Association of Pakistan (MUFAP) (opens in new tab), which sets a code of conduct and handles complaints about mis-selling.

Before you invest, read the fund's offering document and fact sheet. Funds can lose value, and past returns do not guarantee future returns.

Make a complaint

  1. Complain to the company, broker or fund manager first and keep a copy of your complaint.
  2. If it is not resolved, complain to the SECP online through its Service Desk Management System (opens in new tab).
  3. You will get a complaint number to track your complaint.

You can also call the SECP free on 0800-88008 from a landline. The SECP usually does not deal with complaints about events more than 5 years ago.

See how to complain to the SECP (opens in new tab) for other ways to contact it and what it can and cannot deal with.

Investor guides

The SECP publishes guide books for investors, including the Investor Guide (Volume 1) (opens in new tab), which covers the basics of investing in shares, types of investment, researching before you invest and how much risk you can take.

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