ISLAMABAD: The Securities and Exchange Commission of Pakistan has advised people not to invest in fraudulent investment and ponzi schemes, promising hefty profits and unrealistic incentives to trap...
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has advised people not to invest in fraudulent investment and ponzi schemes, promising hefty profits and unrealistic incentives to trap them, a statement said on Tuesday.
It has come to the SECP’s knowledge that the companies, BH Online Jobs (SMC-Private) Limited, Corporate Automobiles (Private) Limited and Best Day Innovative Solutions (Private) Limited, are engaged in unauthorised and dubious business activities.
The SECP received numerous complaints that these companies are offering investment plans such as leasing / financing of cars, motorcycles, houses, etc, and involved in illegal banking business without lawful authority. These activities are prohibited and contrary to the object clause of their memorandum of association, it said.
These entities trap people by offering high rates of return with little risk to investors.
They market their schemes through local newspapers, social media, websites and pamphlets, etc.
The SECP had already initiated legal proceedings for winding up these companies, the statement said.
Moreover, the SECP has also received a number of complaints and queries regarding an entity B4U.
This entity is raising unauthorised deposits from the general public in the name of different investment plans. It is
clarified that “B4U Trades” is not registered with the SECP.
The general public is hereby cautioned in their own interest and advised not to be misled by such schemes, the commission said, adding that this warning is being issued to safeguard the interests of all stakeholders, who are presently dealing with these businesses.
The commission has time and again clarified that mere registration of a company with it does not necessarily mean that these companies are allowed to take illegal deposits from general public.