The Securities and Exchange Commission of Pakistan (SECP) has strictly directed all companies to refrain from inking agreements/contracts with surrogate companies which are originally gambling, betting, and casino companies.
In this regard, the SECP has issued an SRO(I)/2023 here on Tuesday.
According to the notification of the SECP, the Ministry of Information and Broadcasting titled “Zero Tolerance for Surrogate Companies” has informed that some betting outfits labeled as Surrogate companies have entered the Pakistani market by entering into sponsorship and advertisement contracts with a number of media and sport enterprises and advised to not to make any agreements or enter into business relationship with these surrogate companies.
The notification said that these were originally gambling, betting, and casino companies. Such operations are mostly run by hostile countries with the motive to destroy the moral fabric of Pakistan, introduce corruption in the Pakistan team, and put Pakistan into further economic turmoil by moving untaxed money out of the country in dollars.
Many advertisements of such betting surrogate companies are being run on digital, electronic, social, and print media in Pakistan. It is critical to stop all such surrogate betting companies from operating in Pakistan.
Therefore, the Pakistan Cricket Board, Pakistan Super League, PSL franchises, club cricket, private leagues, television channels, radio broadcasters, internet platforms, newspapers, magazines, and other media/ advertisement platforms are strictly advised to not make any agreements and business relations with such surrogate companies and to not promote them through any kind of advertisement.
Moreover, it is advised to immediately terminate all existing agreements with such surrogate companies.
The Securities and Exchange Commission of Pakistan, in exercise of Powers under Section 40B of the SECP Act, 1997 hereby directs all Companies and Limited Liability Partnerships (LLPs) to ensure compliance with the aforementioned advisory of the Ministry of Information and Broadcasting in true letter and spirit, SECP’s notification added.