SECP warns unlicensed services

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Friday warned the unlicensed financial services to stop providing nano and microcredit without having legal mandate with a valid licence from the commission, a notification issued by the commission said.

"Several unregistered and unlicensed entities engaged in such financing activities through websites are warned to immediately stop carrying on such businesses and websites are directly involved in provision of nano and microcredit," it added.

Those who continue to operate without proper licence may be referred to the law-enforcement agencies for appropriate action under the applicable laws and prevention of Electronic Crimes Act 2016, it warned.

Moreover, the general public is advised in its own interest to be prudent and avoid any business transaction with such entities through websites.

Anyone who despite this warning engages in a business transaction with such unlicensed online financial service entities does so at his or her own risk and the SECP would not be responsible for any loss incurred by such person, the notification added.