SECP Moves to Ban Multi-Level Marketing, Pyramid and Ponzi Schemes Across Pakistan

The Securities and Exchange Commission of Pakistan (SECP) has proposed a ban on Multi-Level Marketing (MLM) schemes, referral marketing, and pyramid and Ponzi schemes in Pakistan. The SECP has issued S.R.O. 2440(I)/2025 to introduce the draft Companies (Multi-Level Marketing, Referral Marketing, Pyramid & Ponzi Schemes) Regulations, 2025. The SECP has warned that any company found to be engaged in any unlawful activity prohibited under these regulations shall be liable to be wound up. This shall not restrict bona fide direct selling activities where compensation is primarily derived from actual product sales to end consumers. No company shall promote or carry on any scheme or business that: No company shall promote or carry on any scheme or business that: No company shall promote or carry on any scheme or business that: To promote responsible business conduct and protect consumers and participants, companies shall ensure strict compliance with these regulations while designing, operating, or promoting any scheme. The general public is encouraged to report any unlawful activity prohibited under these regulations, the SECP added.