In order to safeguard the earnings and interests of the general public, 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.
The SECP further clarified that merely the registration of a company does not authorize it to solicit deposits from the general public or offer investment schemes.
It has recently come to the knowledge of the SECP that few companies registered with SECP such as Lasani Oil Traders (Private) Limited and New Lassani Chicks & Chicken (Private) Limited are engaged in unauthorized and dubious business activities.
“These companies have attracted the general public to invest in diesel and chickens by offering hefty unrealistic profits and returns. Furthermore, these companies do not hold any license to seek deposits from the public. Section 84, read with section 301 of the Companies Act, 2017, prohibits and restricts all such activities of these companies,” added the statement.
SECP is in the process of initiating legal action against these two companies.
“The SECP has also received several complaints and queries regarding an entity, namely B4U. This entity is raising unauthorized deposits from the general public in the name of different investment plans,” it added.
The SECP has clarified that “B4U Trades” is not registered with the authority. However, it is working through its different companies registered with SECP. Furthermore, the SECP has already initiated legal proceedings against these companies and their directors.
Given the foregoing, the general public is cautioned and advised in their interest not to be misled by such schemes, investment plans, and programs offered by these entities.
A list of a few such entities/companies indulged in unauthorized activities is available at SECP’s website.
Source: Propakistani