SECP warns public against investing in fake investment entities

ISLAMABAD-To safeguard the hard 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.

“ Recently, few registered companies and unregistered entities portraying to be registered with SECP and FBR or otherwise have started offering unauthorized business activities of leasing/financing facility, MLM, pyramid/Ponzi schemes, various fake posts and also seeking deposits from the general public in the name of jobs, investment and trading etc. General Public is being warned that these schemes/activities /businesses are prohibited and restricted under the law,” said SECP in a notification.

The SECP further clarifies that merely, the registration of a company does not authorize it to solicit deposits from the public or offer investment schemes. It has recently come to the knowledge of 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 been attracting the general public to invest in diesel and chickens, by offering hefty unrealistic profits and returns. It is informed that these companies do not hold any license 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 SECP has also received several complaints and queries regarding an entity namely B4U. This entity is raising unauthorized deposits from the public in the name of different investment plans. It is clarified that “B4U Trades” is not registered with the SECP, however, working through its different companies registered with SECP and SECP has already initiated legal proceedings against these companies and its directors. Given foregoing, the public is hereby cautioned and advised in their interest not be misled by such schemes, investment plans and programs offered by these entities. A list of few such entities/companies indulged in unauthorized activities is available at SECP’s website. SECP has initiated legal proceedings against various companies under the relevant provision of the Companies Act 2017.

List of few of such companies is given as, BH Online Jobs Services (SMC-Pvt.) Limited Karachi, IDG Enterprises (Pvt.) Limited (Islamic Dubai Group) Islamabad, Pakistan Edification Services (SMC-Pvt.) 

Limited Islamabad, 3A Alliance (Pvt.) Limited Karachi, Galaxy Typing Jobs (SMC-Pvt.) Limited Islamabad, Black Diamond Goat Farm (Pvt.) Limited Multan, Memon Corporation (Pvt.) Limited Karachi, Best Day Innovative Solutions (Pvt.) Limited Faisalabad, Corporate Automobiles (Private) Limited Peshawar, Pak Memon Impex (Private) Limited Islamabad, Montviro (Private) Limited Islamabad, M/s Neamat Ullaha & Amjad Javed and Company (Private) Limited, Multan, Ayat Enterprises (SMC-Private) Limited. Islamabad, FS Links (SMC-Pvt.) Limited Multan, Brand testing Servicing Pakistan (Private) Limited Multan Induction and Assessment Initiative (Private) Limited Islamabad, Fragrance Land (SMC-Pvt.) Limited Islamabad Humanitas Meritus (SMC-Private) Limited Karachi, Direct Testing Services (Private) Limited Islamabad, Gold Transmit Network Technology (Private) Limited Karachi, Green Apple Super Market (Private) Limited Karachi Tianshi International Pakistan Co. (Pvt.) Limited Islamabad and DXN International Pakistan (Private) Limited Karachi.