Registration of a company does not authorize it to solicit deposits from general public or offer investment schemes: SECP
KARACHI: To safeguard the hard earnings and interests of general public, the Securities and Exchange Commission of Pakistan (SECP) has issued public warning to refrain from investing in any fraudulent investment schemes that promise hefty profits and unrealistic incentives, SECP statement said.
The SECP further clarifies that merely, the registration of a company does not authorize it to solicit deposits from general 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 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 a number of 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 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.