Pakistan, Nov. 4 -- The Securities and Exchange Commission of Pakistan (SECP) on Tuesday notified the Companies (Prohibition of Unlawful Activities) Regulations, 2026, establishing clear criteria to define and prohibit Ponzi schemes, pyramid schemes, deceptive multi-level marketing (MLM) and unlawful referral marketing.

The Regulations apply to all companies, including foreign companies, and cover schemes operating through physical and digital channels, including websites, mobile applications and social media.

The regulations identify prohibited practices such as deriving income primarily through recruitment rather than genuine product sales, using funds from new investors to pay earlier investors, promising unrealistic or guaranteed re...