ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued a public warning to refrain from investing in any fraudulent investment schemes that promise hefty profits and unrealistic incentives, a statement said on Wednesday.
The commission also clarifies that merely, the registration of a company, does not authorise it to solicit deposits from the general public or offer investment schemes, it added.
It has recently come to the knowledge of SECP that a few companies registered with the commission, such as Lasani Oil Traders (Private) Limited and New Lassani Chicks and Chicken (Private) Limited are engaged in unauthorised and dubious business activities.
These companies have been attracting general public to invest in diesel and chickens, by offering hefty unrealistic profits and returns, it said.
It is informed these companies do not hold any licence to seek deposits from the public and all such activities are prohibited and restricted in terms of Section 84 read with Section 301 of the Companies Act, 2017.
SECP is in the process of initiating legal action against these two companies.
Moreover, the commission has also received several complaints and queries regarding an entity, namely B4U.
This entity is raising unauthorised deposits from the general public in the name of different investment plans, the statement said.
It is clarified that “B4U Trades” is not registered with the SECP; however, working through its different companies registered with SECP and had already initiated legal proceedings against these companies and its directors.
The general public is; hereby, cautioned and advised in their own interest, not to be misled by such schemes, investment plans, and programmes offered by these entities.
A list of a few such entities / companies indulged in unauthorised activities is available at SECP’s website https://www.secp.gov.pk, it added.
