SECP has disqualified the sponsors of B4U Group from becoming a director of any company for a period of 5 years and has also imposed a penalty of Rs 100m on each of its sponsors
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has concluded adjudication proceedings against B4U Group and its sponsors for raising illegal deposits from the public and operating pyramid schemes, in violation of the Companies Act, 2017.
SECP in a statement here on Saturday said that the B4U Group comprises of 18 companies incorporated under the Act, as well as 05 unincorporated business setups.
All the 18 companies were registered during the last two years. The main sponsor of B4U Group is Mr. Saif-ur-Rehman, along with his immediate family members.
SECP, after completing the due process of law, has disqualified the sponsors of B4U Group from becoming a director of any company for a period of 5 years and has also imposed a penalty of Rs 100 million on each of its sponsors. Further, the sponsors shall not be allowed to incorporate any new company under the Act.
In addition, SECP has granted sanction for winding up of all 18 companies of B4U Group and imposed a penalty of Rs 200 million on each company. Aggregate penalties amounting to Rs 4 billion have been imposed on B4U Group.
SECP is fully committed to safeguard the interest of general public against prohibited business practices such as illegal deposit raising, Ponzi and pyramid schemes etc.
In addition to initiating enforcement actions, SECP has continuously been issuing necessary press releases, time and again, cautioning general public not to invest in any such illegal and dubious investment plans, while take strict enforcement action against companies and sponsors that violate their mandate.