SECP issues a public warning to refrain from investing in any fraudulent schemes

The SECP shared a list of fraudulent companies on its official website.

fraudulent schemes

The Securities and Exchange Commission of Pakistan has warned the public against investing in fraudulent schemes that promise high return rates.

The SECP noticed that a company running by the name “International Business Solutions (Private) Limited” was raising illegal deposits from the general public by offering them profits.

Similarly, an online app, “Barwaqt,” is also found to offer financing facilities to the general public. To support its unlawful activity, the mobile App is believed to be licensed by the SECP.

It is now clarified that the entities mentioned above are neither registered nor licensed by the SECP.

Given the preceding examples, people are expressly cautioned to abstain from dealing and investing in these entities.

The SECP also initiated legal actions against these entities. It is reiterated that raising unauthorized deposits from the general public, indulging in referral marketing, MLM, Pyramid, and Ponzi Schemes are criminal activities in terms of section 301 of the Companies Act, 2017.

The SECP made a list of companies linked in illegal business activities, such as unlawfully getting deposits from investors by lying about massive returns.

The SECP shared a list of such companies on its official website and can be seen at the following link: www.secp.gov.pk.

Complaints or evidence against companies involved in unauthorized activities and illegal deposit-taking can be sent to email ID scams@secp.gov.pk.

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